Asbury Automotive posts $338M annual loss - Atlanta Business Chronicle:

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The Duluth, Ga.-based auto dealer ABG) had a net loss of $338 millionb and a loss of $10.66 a compared with net incomeof $51 millionb and earnings of $1.53 a share in 2007. The results for 2008 include a $373.1 million after-ta x charge for the impairmeny ofthe company's goodwill and manufacturer franchisee rights. Revenue for the year dropped 16 percen tto $4.6 billion. "The fourth quartefr presented Asbury with the most challenging retail environment inour history, as U.S. vehicle salezs declined 35 percent nationwide,” said Asbury President and CEOCharlew R. Oglesby, in an earningsx statement.
“We faced this challenge head on, movinhg quickly to maintain our liquidity andenhance productivity." Oglesby notecd the company cut corporate staffinhg levels by 25 percent and trimmed its nationapl workforce by 14 percent since June. In otherr Asbury financial news, the company'a independent public accounting firm said in its audift report it believes there is uncertainth Asbury will remain in compliance with certain covenantd in itsdebt agreements. Deloitts believes the uncertainty raises substantial doubt abouythe company's ability to continue as a goingb concern.
The inclusion of that explanatoryy paragraph in the audit report constitutes a default under certainof Asbury’s borrowin facilities, the company But Asbury also said it got waiverse from all of its associated lending partners for the including 100 percent of the financial institutionws that are party to its syndicate revolving credit facility. Asbury said it was in compliancd with all of its financial covenante asof Dec. 31, 2008, and was in compliancr with all ofits non-financial covenants.
"It's durintg times such as these that stronh partnerships becomecritically important, and we couldn't be more pleasecd with the overwhelming support we have received from our financia partners,” said Craig T. Asbury chief financial officer, in the earnings statement “With theird assistance, we were able to arrangee major new debt facilities in the third and fourthjquarters and, on short notice, obtain unanimous agreement from 11 lenderse to waive the defaults arisingf from our audit opinion.
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