Asbury Automotive Group Inc (ABG) 2006 Q2 法說會逐字稿

Welcome to the Asbury Automotive Group's Second Quarter 2006 earnings conference call. This call is being recorded. Before we begin we would like to remind everybody that the conference call today will include some forward-looking statements that are subject to risks and uncertainties, which are detailed in the company's most recent 10-K report, as well as other filings with the SEC. In addition, certain non-GAAP financial measures as defined by the SEC may be discussed in this call. To comply with SEC rules, reconciliations of non-GAAP financial measures have been attached to this morning's release and will also be posted on the company's website under the Investor Relations' section. From time to time the website will be updated with additional financial information. So any interested investor should check the site periodically for such information.

The purpose of today's call is to discuss Asbury's second quarter results. The agenda will be as follows. Ken Gilman, President and CEO, will begin with a few overview comments; then Gordon Smith, Asbury's CFO will provide everyone with some financial highlights. After that, Mr. Gilman will have a few concluding comments, and then, as always, there will be time for questions that you may have. Mr. Gilman you may begin.

Thanks operator and good morning to everyone. Thank you for joining us today. Before I go into my prepared remarks, I wanted to let you know that Stacey Yonkus, who is our Director of Investor Relations isn't here. She suffered a beach-related accident and will be out of work for a while, although she is working from home. So if you want to send her by e-mail some of your own vacation pictures from this summer feel free to do so. I am sure she will be interested.

Now to business. As you can see from our release, this was another strong quarter for Asbury. On a GAAP basis, income from continuing operations was up 14%, backing up some unusual items in this year's second quarter and those unusual items are adding to income, they are not subtracting. Income from continuing operations was still up 10%. The results are even stronger if you look at the fundamental performance of the business. We once again posted solid same-store results with same-store retail revenue up 7% and same-store retail gross profit up 9%. Unfortunately our bottom line results were once again significantly dampened by the impact of higher short-term interest rates. While an increasing interest rate environment has been a fact of life for the last couple of years, it is worth noting how strong our pure operating results were. Focusing on operating income, which excludes interest expense including floor plan interest, we achieved a 15% growth on a comparable basis. I think that is a pretty impressive performance but unbiased. This strong performance reflects our continued robust same-store gross profit generation leveraged by ongoing cost control and reduction efforts, which Gordon will discuss in greater detail in a few minutes. Overall, Asbury's dealerships continue to perform very well in the face of a challenging retail environment. There are obviously significant forces outside of our control in automotive retailing in terms of demand for new cars, the ongoing manufacturing overcapacity among the Detroit OEMs, and the ever-changing incentive wars. By remaining focused on executing against our business model and strategy, there is much we can do to grow the business and improve our performance regardless of the environment for new vehicles, and that's exactly what we've been doing over the last two years.

In new cars, Asbury again outperformed the industry in the second quarter. US new car sales were down about 5% from a year ago, while Asbury's new same-store unit sales, excluding heavy trucks were flat. This is due to our brand mix, which as you know, is focused on mid-line imports and luxury import franchises. Segments of the market that have been gaining share for years and should continue to gain share. In terms of our brand performance, Honda and Toyota clearly outperformed during the quarter.

On a same-store basis, our average new car price was up about 3%, while the average gross profit per car was up about $50, and our new -- our new vehicle gross margin rate was basically flat. Overall, this produced new vehicle gross profit dollars, an increase of 4% on a same-store basis. My view is that we are continuing to perform fairly well over all new vehicles. That said, I don't expect this to become an easy market for anyone to compete in at any point in the future. By the way, I am sure many of you saw as this relates to new vehicles, the recent BusinessWeek article -- I don't know whether it was, and I can't recall whether it was in a magazine or in the online edition, highlighting some of the pressures put on domestic branded car dealers by their OEMs and how difficult it can be for dealers to navigate in an environment that can change dramatically from week to week. We would certainly agree with many points made in that article.

Now back to our business, we also had another very strong performance in our used business during the second quarter. On a same-store basis, we will go through the numbers, but -- and we will get to the bottom line of it, which is really impressive. On a same-store basis, used units were up 6%, and average price is up 5%. So, our used retail revenue rose 11%. Our used gross margin rose a full percentage point, and our average used gross profit and dollars per vehicle was up about $250. These actions combined to drive our used gross profit up 20% on a same-store basis. That's a terrific performance.

Our used results continued to benefit from some of the changes we made in this business a few years ago in terms of establishing regionally used car teams, upgrading our training programs, and using technology to help us better manage and optimize our used vehicle inventories. In fixed operations, as we know, parts, service and collision repair, we also had another excellent quarter with increases of about 8% in both same-store revenue and same-store gross profit. Here too, we are benefiting from strategic investments made over the last couple of years, adding additional physical capacity, new equipment and more service technicians and service providers, all of whom continue to receive ongoing training. We think these are among the highest ROI investments we could make, that is physical capacity, the new equipment, and overall the training.

Obviously, we are focusing our investment dollars primarily on the brands, the mid-line imports and luxury import name plates that are putting lots of new cars out on the road, all of which creates an increasing need for service and maintenance work now and into the future.

In finance and insurance, we reported a 10% increase in same-store F&I. These results include some one-time income from the sale of Asbury's remaining interest and variable profits on a pool of extended service contracts. Excluding this sale, F&I on a same-store basis was up 1% and relatively flat on a PVR basis, with $875 PVR being generated at the dealership level. This is a continuation of the plateauing trend we have seen in F&I over the last couple of quarters, following several years of strong increases.

We are particularly pleased with our continued progress in reducing SG&A expenses relative to our gross profit increases. I will let Gordon get into details on our progress there, so with that, I will turn the call over to Gordon, who will review the financials and some other related topics in greater detail. Gordon?

Thanks, Ken, and good morning, everyone. I too wish Stacey well from -- I hope she gets back soon. As Ken mentioned, this was another successful quarter for Asbury.

Well, I'll add -- I'm sorry, Gordon -- that means Gordon wants Stacey back or else he will have to write these scripts. I'm sorry to interrupt you, Gordon.

As we have discussed in the past, the strength of our business model is that it is balanced, not relying solely on one business line to achieve overall growth. This was true during the quarter, as our higher margin businesses drove the company's overall results. At a time when new car business was down 5% industry-wide, especially in June, as we went up against the employee pricing program that stimulated the market last year, the shift toward our higher margin businesses led to a 30 basis point improvement in our overall gross margin. With used retail comprising 19.5% of total revenue, up 80 basis points, and fixed operations comprising 11.3% of total revenue, up 20 basis points. Taking a closer look at the quarter, we once again achieved substantial growth in comp store gross profit, up 7%. By business line, comp store new retail vehicle gross profit grew 4%, used retail vehicle gross was up an impressive 20%, fixed operations continued its steady growth rising 8%, and dealership-generated F&I was up 4%. Our expenses were -- on expenses, we are very pleased with our 140 basis point reduction in our SG&A expense ratio, the details of which I will get to in a few minutes. At a high level, our continued progress in controlling our SG&A and leveraging our fixed cost structure has enabled us to flow 40% of our incremental gross profit through to operating income on a comparable basis. And as Ken said previously, delivering 15% operating income growth before floor plan.

Income from continuing operations, excluding one-time items as stock-based compensation, was 18.8 million or $0.56 per share versus 17.1 million last year or $0.52 per share. The one-time items during the quarter included an after-tax gain of 2.1 million on the sale of Asbury's remaining interest in variable profits on a pull of extended service contracts and an after-tax charge of 9 million related to the company's recent strategic review of the business.

As I mentioned, our disciplined focus on expense control was a major factor in achieving our strong results. Specifically, we continued to enjoy the savings from last year's regional re-organization, which helped to reduce our personnel expenses as a percentage of gross profit 40 basis points to 34.7%. In addition, our regional management teams continue to actively manage the deployment of our advertising dollars, ensuring that we get the biggest bang for our advertising dollar. These efforts resulted in a 10% reduction in our advertising spend per vehicle, continuing the same trend we saw in the first quarter.

Overall, our SG&A expense ratio improved an impressive 140 basis points to 75.1%. This marks the seventh consecutive quarter of the year-over-year improvement in our expense ratio. And we expect this trend to continue as we have several corporate-wide initiatives in place that will lead to future efficiency in our cost structure. For example, we are in a process of consolidating Asbury's three dealership management systems into a single technology vendor. The savings of which will be significant beginning in 2008.

We continue to focus on inventory management. However, our domestic franchises are bumping up against a tough comparable, leading to a 7-day increase in overall [DSI] to 66 days. By category, luxury brands were 63 days versus 56 days last June with inventory increasing 5%. Mid-line import brands were flat with last June at 50 days with inventories increasing 4% due to the inventory build at our Honda store in Southern California. And mid-line domestic brands were up 25 days to 95 days with the exception of last year, which was impacted by the robust sales resulting from the employee pricing promotions, our domestic inventories are in line with historic averages. As a result, our overall domestic inventory was up 18% on a comp store basis. Used vehicle DSI was up four days from last June to 48 days. Our operations continue to generate substantial levels of cash flow with EBITDA of $45.3 million. Excluding stock-based comp and one-time items, a 7% increase over last year. Excluding floor plan expense, EBITDA increased 14% and our EBITDA margin improved 20 basis points to 3.7%, the highest level attained in over three years.

Taking a look at our capital expenditures for the quarter, project and maintenance-related CapEx totaled 23 million, of which approximately 7 million will be financed. We expect that our CapEx spend for 2006 will total between 60 and 70 million, down slightly from our previous guidance with 40 to 50% financed.

Turning to the balance sheet, our cash and cash equivalents totaled 89 million, up from 57 million at year-end. Our debt-to-total cap ratio improved 180 basis points to 45.8% due to the strength of our earnings over the first half of the year. Our capital expenditures remained solid -- capital structure remained solid with over 97% of our long-term obligation fixed and maturing in 2012 or later.

Looking forward to the second half of 2006, we now expect that business will deliver between $1.82 and $1.87 on a full-year basis, up slightly from our previous guidance of $1.80 to $1.85 per share. This estimate is inclusive of stock-based compensation of approximately $0.10 and considers the sale of extended service contracts during the quarter, which will effectively reduce F&I income for the second half of the year by $0.04 per share.

With that I will turn the call back over to Ken.

Thanks, Gordon. I know a lot of you listen to a lot of these calls, some more than others. Some folks in the office here were wishing that we had audio props if we haven't had such a good report so we could create some excitement the way Cramer does on Mad Money. But, I said no. It’s not dignified enough for this call. Touching on some regional highlights, the standout region was again our West region led by Tom McCollum, which includes Texas and California. Texas was particularly strong benefiting in part from our new Honda store in Frisco near Dallas. The used car business also continues to perform extremely well in Texas as they experiment with some different approaches to marketing the used business. Overall, our used gross profits in Texas were up a remarkable 70% in the second quarter. In Southern California, we are continuing to benefit from Spirit Honda, which as we’ve noted in the past is just down the street from the world's largest car dealership.

Those of you who have a chance to go by our El Monte store, if you go by it dusk or in the evening, you will see some remarkable marketing the way we have lit the store and it's very attractive. Profits were also up significantly in Northern California.

Florida, our largest region performed well in light of its exceptionally strong performance last year. I will elaborate.

Florida includes our biggest concentration of General Motors' dealerships where last year, towards the end of the second quarter, we were able to take full advantage and then some of GM's employee pricing program. In this regard Florida is a great example of how our diversified business models smoothes out the ups and downs of new cars, caused by the ups and downs in sales incentives. Of course we have no control over them. This year, with that as background, Florida obviously faced a very tough year-over-year comparison. So, the unit sales in Florida, not surprisingly, were down. But, they were able to offset the decline with increased gross profits and use in fixed operations. Thereby achieving a small but meaningful increase in overall same-store gross profit. And to me that small increase is incredibly meaningful because it shows you how this business model works when it's operated properly.

As you know, the pace of our acquisition activity has slowed quite a bit over the last year and a half. Dealers seem to be holding on to the brands and the locations that we are generally interested in and the prices where stores do come up for sale are in many cases just too expensive. As we have said, we are not going to pay silly money to do deals just for the sake of doing deals. A deal has to make sense for our shareholders because we are not going to lower our standards in terms of acquisition or a like criteria.

With that in mind, we are lowering our expected range of acquisitions from 3 to $500 million a year in annualized revenue to approximately half of that or about 200 million. This applies to 2007 and go forward, not to 2006, which based upon our current pace will come in below the $200 million level. To sum up, we remain very optimistic about Asbury's growth prospects, both short and long-term based upon the fundamental strengths of our attractive portfolio of dealership brands and locations. Almost 80% of our new passenger vehicle unit sales come from mid-line import, luxury import brands, which are clearly the sweet spot of the market. We have great people, many of the best dealership general managers in automotive retailing and are continuing to upgrade our human resources every year. By focusing on growing our used car and service businesses, we continue to perform well despite the vagaries of the new car market. And we are leveraging our strong gross profit increases by streamlining our expense structure plus we will continue to supplement our organic growth with tuck-in acquisitions in existing markets, though as I just indicated most likely to a lesser extent than we once expected. With that, I will turn the call back over to the operator and Gordon and I will be pleased to take any questions you may have.

Thank you. Today's question-and-answer session will be conducted electronically. [OPERATOR INSTRUCTIONS]. Rick Nelson, Stephens.

Thank you. Good morning and nice quarter.

Thank you Rick.

Ken, as you look at the cash flow, I know you are pulling back some on the acquisition pace, how do you rank the use of that cash flow between debt paydowns and buybacks, dividends, facility spending?

We are -- that is under examination and all those are considered. We are not going to accelerate any facility spending or change our course on CapEx. We have got pretty sound criteria that drive to a good strong ROI, but in terms of debt paydown and returning capital to shareholders in the form of either a share buyback or a dividend, that is part of an ongoing examination by the Board. Obviously, they are well aware of the cash build-up and are recognized that the goal is to increase shareholder value and they are thinking it through.

Okay. In terms of just following up on the acquisition climate, the manufacturer approval process, is it getting tougher for the public companies to acquire?

I don't think so. I think that to my knowledge, all the public companies have framework agreements with the Japanese brands and the domestics. And they are -- follow they are all comparable I am told, although they are all confidential, and that the OEMs treat everybody fairly. We may not like the way we are treated, but I think they treat everybody fairly, they treat everybody the same and we can't tell -- I don't sense any change in their attitude at all.

Okay. On the used car performance, very strong, some of your peers are also showing good results there. Are there industry factors as well driving that used business and is it sustainable?

I don't think 20% same-store gross profit increase is sustainable. Although, if my memory serves me correctly, we did a quarter of that similar number, one quarter last year. That said, I think that, if you look at -- if you go back to the first quarter and analyze what my peers, the CEO of the other public companies are saying, they all are focusing on used cars to a degree with technology and other approaches and I think it has made us all better used car merchants, and so we are taking advantage of it. I can't detect nationally a major shift to franchise dealers away from the independent used car lots or the PennySaver neighbor-to-neighbor kinds of used car selling. So, I think that what people are experiencing is similar to what Asbury is experiencing which is, we are getting better at the trading and we are getting better at the merchandising, and it is both, at least from Asbury's standpoint, it is the training what we are doing with our used car people and the technology we are deploying.

Great. Thank you.

Matt Nemer, Thomas Weisel Partners.

Good morning everyone.

Good morning.

The first question is on the new car side. I am wondering if the Nissan four-cylinder recall had an impact on you guys, it sounds like -- I know that you are pretty heavy in that brand and it sounds like that may have hurt smaller car sales?

No question. We have -- my thinking is we have -- I don't remember the exact number -- but over 400 grounded vehicles that are now starting to flow back to the dealerships, but that -- it clearly hurt. It is right in the summer driving months with a wonderful car, it gets wonderful gas mileage. We have I think 12 of the Nissan franchises are hurt.

Does that correct itself in the current quarter or is it -- when does that start to correct itself?

I don't think you make up. I think we will have the inventory, but I just don't -- it will be nice if you did, but I think that if somebody really wanted to buy, they are on to something else.

Yes, Nissan was soft for the first half. Their new product introductions are coming in the second half. So that will probably have more of an influence than just the return of the old car.

Okay. And then continuing with new cars, on the inventory front, can you break out the domestic inventory by OEM?

Matt I prefer not to do that. I did that once a couple of years ago and it didn't sit well with our business partners and so I’d prefer to just keep it at the total level.

Let me ask it another way, is there one player in that three that is skewing it or are they all about the same?

I think as you can imagine, GM started their employee pricing first and so in the -- they would have the biggest impact for the second quarter.

Okay. And then moving on to used vehicles which was a very impressive performance, I am wondering how much you would attribute to the technology piece of that equation, and kind of maybe can you give us a quick update on your -- how pleased you are with the technology, if you think that you will continue with that?

Well, we are going to continue with the technology. It is an enabler. It is a tool. In this kind of market, you have to be really good at buying and selling, trading for used cars and one of the important aspects of the tool is it’s an appraisal tool. So, that it has enabled us to get the customer the highest price for a trade, yet not take undue risks on our part in terms of how much money to put into it and then what we need to wholesale out versus what a desirable piece to retail on one of our lots. So, I think it has given us an advantage. But I will tell you that in Florida where they are not using -- not yet using the tool in, I guess, the Jacksonville, the Coggin platforms. They have developed and used for years something that is very similar and they’ve trained their people quite well. So, I think that the technology is an enabler, it is a discipline that you can apply to the used car business. But it is not a magic wand. So, you have got to use it. It is used by people to achieve an objective, it is just a tool.

Got it. And then just to follow-up on used. You mentioned some kind of an experiment in Texas. Can you elaborate on that?

I'd rather not, because if people want to see it, they are going to have to go to one of the three markets in Texas and watch a lot of television. Listen to a lot of radio.

Okay, fair enough. And then moving to F&I, excluding the gain, it looks like maybe it was down slightly, unless I am doing my math wrong and I am wondering if that is the change or any change in sort of cap on loan mark-ups or if it is a mix shift to leasing or what might be driving that?

I will address each of those. We have always worked within a loan cap on our financial reserve. When I joined the business almost five years ago, I put in a 3% cap, two years ago it went to 2.5% and our average runs, 1 and 1.25. So, that has not been it. I think that at some point, you can reach a level of diminishing returns in terms of how quickly, how high up you can go. There are still a bottom third of the stores by brand that are underperforming and it rotates around a bit and it is something that we can address and we can fix. I am not happy with it. There is opportunity, but it is -- in no means a low-hanging fruit. This is a work that is not difficult, but you need the discipline and persistence. And I think that we can get F&I PVR to increase, it just takes a bit more work. And we to date, this year, I have been unhappy with our results. So, there is opportunity there.

Okay. That is helpful. And then last question. Gordon, can you provide some more detail on the abandoned strategic project charge, what is the nature of it and what is the -- maybe you can get more specific on where the money is actually going?

I said it, during the quarter, we looked at a lot of different things as it pertained to some of the questions that Mr. Nelson asked in terms of what is the best use of our capital and our balance sheet. So, we were exploring all those options and we are in the final stages of coming to closure on that. That was partly associated with that.

We’d like to say, we spent the money trying to figure out how to deliver enhanced shareholder value and leave it go at that.

Okay. But, most of it is sort of money that went to professional services firms?

I am not going to go any further than what we have said.

Got you. Okay. Great. Nice quarter. Thanks very much.

Matthew Fassler, Goldman Sachs.

Thanks a lot and good morning. My first question is to get more color on what happened to Stacey.

I would tell you, I wasn't there because I don't go to the beach with Stacey, but I heard she ran into a rogue wave. I said to her she shouldn't be bodysurfing.

Okay. Just a little bit of color on the relationship between the one-time benefit that you booked on the F&I front? And Gordon you talked about a bit of a drag on second half F&I earnings, if you could just let us know, the net impact -- if the net impact of the company was positive in the aggregate and by how much just to help us with the arithmetic there?

In the math of it all, it was the tail of the program that was really discontinued in 2003 and for the most part it is neutral. The tail was going out three years, but most of that was going to be in this year. So, it got a $0.04 impact on the second half of this year. But, the rest of it was really tailed out over two or three years. So, we were in the process of renegotiating with JM&A who was our service provider and so we just cleaned it up. So, there is really on a PV basis no impact on overall income that we got from the program.

Understood. It is just a timing issue, then.

Yes. Just timing.

That is the reason we have been disclosing to you platform-based F&I PVR versus total because we knew this would ultimately be draining down. And we didn't want anyone to get the thought in their heads that the F&I generating potential of the storage were stronger than it was.

Got you. Second question. On the used business, as you talk about -- you talked about the operating improvements, merchandising improvements, talk about sort of the buy side of this? First, the sell side, whether you think the margin expansion in particular relates to changes in buying disciplines or whether you think that this is a reflex rather how you sell and sort of move the product and mark it down.

I think it is a little bit of both. We typically in the industry as you’ve heard me say before, we sell from cost up and they have a sort of a target in mind, I think, in terms of gross dollars per vehicle. I think we continue to stress, putting all the money into a tray that we can so the customer gets the best deal. That said, you have to know what the vehicle is worth or you are going to lose it on the other end. And so by using the technology and by basically being a bit afraid of the market. Because if you are not afraid of the used car market today, you are going to lose a lot of money because it's very volatile. You may not see it in the month-over-month statistics that Manheim publishes, yet it comes out at times. But, you really have to be sharp. I think it has made everybody a little bit better on the buying side and perhaps a little bit better on the selling side. And so you add those two together and you wind up with a margin increase that's meaningful.

And just as a reminder, we have enjoyed a 12% margin around that. It was 11.8 in the fourth quarter of last year. But, for the last year we have been able to maintain about a 12% margin on new -- on used, sorry.

On used, understood. And to the extent that wholesale prices have eased off a bit, does that really impact the profit picture in your view, on the used side for your business?

I don't think so because as I have said we price from cost up, so that we are putting the right amount of money in. And I have said this before, if the wholesale market comes down, the only thing that we have at risk is what we have in inventory because in theory we should be trading at the moment for what the car is worth and then adding the gross to it that we are desiring to make. So, I think if we are -- if we are just on top of it, we know what's going thorough the lanes, we know what buyers are willing to pay for vehicles at the wholesale level. I think we've taken a lot of risk out of it. We are better merchants, we are making a little more money. We are offering our customers better deals on the trade and I think also when the used car customer comes into buy.

And then once again, when you look at it, look at the margin and we have done it through many cycles of -- in the wholesale market. So, that's just to kind of accents what Ken was just saying.

To get a little more clarity on your decision on acquisitions, if you were to sort of characterize the drivers, was it bumping up against competitors? Was it prices from the sellers or was it simply the supply of appealing options for you?

Competitors have almost nothing to do with it. It's low supply and that where they do come on the market, the asking price is very high, and quite frankly where we have seen a few deals they did not go to one of the other publics. There was one -- in one case there was a luxury store that went for an astronomical price by another dealer from the North East and also they wanted to sell [inaudible] to maintain a minority ownership in the dealership. So, you get the combination of both. I think that what's going to happen over the next three or so years is that there is going to be a wave of vehicles, not a large wave, because these are very select brands, come on the market. The dealers that don't have successor family members are going to want to monetize the investment and they have been basically enjoying what's been happening in the marketplace. And I think they are just going to be a little older and they are going to have the urge to sell. So, I think it's going to loosen up a little bit. I don't know whether the prices are going to come down, that's sort of doubtful unless there is a big shakeout in terms of the economics of these stores.

So, the number of dealerships that are in play, if you will, is as much an issue as the prices of those that are.

That's my sense of it.

And then finally, just a clean-up question. I don't think you put floor plan assistance dollars in your press release, was that in there, and I just missed it or can you tell us what that number was?

I can tell you you missed it and get you scurrying to look. But, I don't believe that's the case.

It was $250 per vehicle. That's down about $5 from last year, it was 256 last year.

That's for total vehicle retailed or per new vehicle?

Per new vehicle.

Kelly Dougherty, Calyon Capital.

Good morning, guys. I am wondering if you could just tell me what the main drivers were of this quarter's increase in guidance.

The increase in --?

Guidance.

It's just taking the -- what we saw in the second quarter and pushing it forward, it doesn't -- we think what we saw in the second half was about what we thought, but it was just a small reflection of what happened in the second quarter.

Okay, great. Thanks. And then I just have a quick question on your divestitures. I am wondering if there are any changes to your divestiture strategy, maybe you want to accelerate some of these domestic divestitures too, if you wanted to further improve your brand mix due to the slowings on the acquisition side?

I don't think so. There are -- we only have a couple of stores that in theory we could divest, but they are sitting on real estate that we think has tremendous value, and we would like to use for other purposes potentially. So, we are not inclined to let those stores go. But if you look at our portfolio as we do, obviously you can't see it store by store. I am very pleased with the quality of the portfolio of the stores, where they are located. So, I don't see much in the way of divestiture activity, just here and there, but really we are done with that as a program.

Okay. Great. Thanks very much.

With no other questions holding, I would like to turn the conference back to Mr. Gilman for any additional or closing remarks.

I don't have any, although Cramer is here and he would like to -- no, he doesn't. We don't have any audio props and sounds for you. It's -- we enjoy working in the business. I think the people at Asbury are having fun with their jobs, and we look forward to talking to you again in three months. Thank you all and have a good day.

Ladies and gentlemen, that will conclude today's teleconference. We do thank you for your participation. We ask that you disconnect your phone line at this time.