- Record second quarter revenue of $4.2 billion
- Record for second quarter parts & service revenue of $581
million and gross profit of $340 million
- Repurchased approximately 193,000 shares for $43 million in the
second quarter and approximately 592,000 shares for $130 million
year-to-date through August 1, 2024
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one
of the largest automotive retail and service companies in the U.S.,
reported second quarter 2024 net income of $28 million ($1.39 per
diluted share), a decrease of 86% from $196 million ($9.34 per
diluted share) in second quarter 2023. Second quarter 2024 adjusted
net income, a non-GAAP measure, decreased 31% year-over-year to
$129 million ($6.40 per diluted share) compared to adjusted net
income of $188 million ($8.95 per diluted share) in second quarter
2023.
“I am proud of our team members rising up to meet an
unprecedented challenge for our business and our industry” said
David Hult, Asbury’s President and Chief Executive Officer. “Our
results were impacted by the CDK cyber incident, both from lost
business and one-time expenses related to the outage and recovery
of the systems that service most of our stores. We partially
mitigated the disruption by facilitating retail sales through
Clicklane, where we sold 15,201 cars in the quarter, an all-time
record and 33% over last year. As we move into the third quarter, I
am grateful for the innovative thinking and collaborative spirit of
our team members, and their relentless dedication to delivering the
most guest-centric experience in automotive retailing.”
The financial measures discussed below include both GAAP and
adjusted (non-GAAP) financial measures. Please see “Non-GAAP
Financial Disclosure and Reconciliation, Same Store Data and Other
Data” and the reconciliations for non-GAAP metrics used herein.
Adjusted net income for second quarter 2024 excludes, net of
tax, $101.3 million of non-cash asset impairments ($5.02 per
diluted share), gain on divestitures of $2.7 million ($0.13 per
diluted share), and losses related to hail damage of $2.3 million
($0.11 per diluted share).
Adjusted net income for second quarter 2023 excludes, net of
tax, gain on divestiture of $10.2 million ($0.48 per diluted
share), gain on legal settlement of $1.4 million ($0.07 per diluted
share) and losses related to hail damage of $3.2 million ($0.15 per
diluted share).
Second Quarter 2024 Operational
Summary
Total Company vs. 2nd Quarter 2023:
- Revenue of $4.2 billion, increase of 13%
- Gross profit of $731 million, increase of 2%
- Gross margin decreased 185 bps to 17.2%
- New vehicle unit volume increase of 12%; new vehicle revenue
increase of 11%; new vehicle gross profit decrease of 16%
- Used vehicle retail unit volume increase of 22%; used vehicle
retail revenue increase of 15%; used vehicle retail gross profit
decrease of 14%
- Finance and insurance (F&I) per vehicle retailed (PVR) of
$2,151, decrease of 9%
- Parts and service revenue increase of 10%; gross profit
increase of 16%
- SG&A as a percentage of gross profit of 65.2%
- Adjusted SG&A as a percentage of gross profit of 64.8%
- Operating margin of 2.4%
- Adjusted operating margin of 5.6%
Same Store vs. 2nd Quarter 2023:
- Revenue of $3.5 billion, decrease of 5%
- Gross profit of $620 million, decrease of 12%
- Gross margin decreased 144 bps to 17.6%
- New vehicle unit volume decrease of 6%; new vehicle revenue
decrease of 6%; new vehicle gross profit decrease of 29%
- Used vehicle retail unit volume decrease of 2%; used vehicle
retail revenue decrease of 7%; used vehicle retail gross profit
decrease of 27%
- F&I PVR of $2,124, decrease of 11%
- Parts and service revenue decrease of 2%; gross profit increase
of 4%
- SG&A as a percentage of gross profit of 64.9%
- Adjusted SG&A as a percentage of gross profit of 64.4%
- Operating margin of 1.9%
- Adjusted operating margin of 5.8%
CDK Global Outage Impact
During June, one of the Company’s vendors (CDK Global)
experienced a cyber incident impacting certain services provided to
the Company and many other automotive retailers, including the
Company’s sales, service, inventory, customer relationship
management, and accounting functions. Upon discovery of the
incident, we took immediate precautionary steps to protect our
systems. We currently estimate the earnings per share for the
quarter were negatively impacted between $0.95 and $1.15 per
diluted share, without taking into account any potential recoveries
related to the incident. Estimated impacts included both internal
projections of lost or deferred income and one-time expenses
related to the outage and recovery.
Liquidity and Leverage
As of June 30, 2024, the Company had cash and floorplan offset
accounts of $464 million (which excludes $15 million of cash at
Total Care Auto, Powered by Landcar) and availability under the
used vehicle floorplan line and revolver of $342 million for a
total of $806 million in liquidity. The Company’s adjusted net
leverage ratio, which is calculated as set forth in our credit
facility, was 2.7x at quarter end.
Share Repurchases
The Company repurchased approximately 193,000 shares for $43
million during the second quarter 2024. Year-to-date through August
1, 2024, the Company has repurchased approximately 592,000 shares
for $130 million. On May 15, 2024, the Company announced its board
of directors approved an increase in the authorization of the share
repurchase plan for the Company, expanding the remaining
availability to repurchase up to $400 million. As of August 1,
2024, the Company had approximately $329 million remaining on its
share repurchase authorization.
The shares may be purchased from time to time in the open
market, in privately negotiated transactions or in other manners as
permitted by federal securities laws and other legal and
contractual requirements. The extent to which the Company
repurchases its shares, the number of shares and the timing of any
repurchase will depend on such factors as Asbury’s stock price,
general economic and market conditions, the potential impact on its
capital structure, the expected return on competing uses of capital
such as strategic dealership acquisitions and capital investments
and other considerations. The program does not require the Company
to repurchase any specific number of shares, and may be modified,
suspended or terminated at any time without further notice.
Earnings Call
Additional commentary regarding the second quarter results will
be provided during the earnings conference call on Friday, August
2, 2024, at 10:00 a.m. ET.
The conference call will be simulcast live on the internet. The
webcast, together with supplemental materials, and can be accessed
by logging onto https://investors.asburyauto.com. A replay and the
accompanying materials will be available on this site for at least
30 days.
In addition, live audio will be accessible to the public.
Participants may enter the conference call five to ten minutes
prior to the scheduled start of the call by dialing:
Domestic:
(877) 407-2988
International:
+1 (201) 389-0923
Passcode:
13748071
About Asbury Automotive Group,
Inc.
Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company
headquartered in Duluth, GA, is one of the largest automotive
retailers in the U.S. In late 2020, Asbury embarked on a multi-year
plan to increase revenue and profitability strategically through
organic operations, acquisitive growth and innovative technologies,
with its guest-centric approach as Asbury’s constant North Star. As
of June 30, 2024, Asbury operated 155 new vehicle dealerships,
consisting of 204 franchises, representing 31 domestic and foreign
brands of vehicles. Asbury also operates Total Care Auto, Powered
by Landcar, a leading provider of service contracts and other
vehicle protection products, and 37 collision repair centers.
Asbury offers an extensive range of automotive products and
services, including new and used vehicles; parts and service, which
includes vehicle repair and maintenance services, replacement parts
and collision repair services; and finance and insurance products,
including arranging vehicle financing through third parties and
aftermarket products, such as extended service contracts,
guaranteed asset protection debt cancellation, and prepaid
maintenance. Asbury ranks 18th in the 2023 Forbes list of America’s
Best Mid-Sized Companies. Asbury is recognized as one of America’s
Greatest Workplaces 2023 by Newsweek as well as one of the Best
Companies to Work For in the Retailers industry by U.S. News &
World Report.
For additional information, visit www.asburyauto.com.
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, objectives, projections regarding Asbury's financial
position, liquidity, results of operations, cash flows, leverage,
market position, the completion of the Company’s investigation into
the CDK incident, the ultimate results of CDK’s and the Company’s
containment and remediation efforts, the timing of the restoration
of full access to the affected systems and changes in customer
sentiment due to the incident, the timing and amount of any stock
repurchases, and dealership portfolio, revenue enhancement
strategies, operational improvements, projections regarding the
expected benefits of Clicklane, management’s plans, projections and
objectives for future operations, scale and performance,
integration plans and expected synergies from acquisitions, capital
allocation strategy, 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, our inability
to realize the benefits expected from recently completed
transactions; our inability to promptly and effectively integrate
completed transactions and the diversion of management’s attention
from ongoing business and regular business responsibilities; our
inability to complete future acquisitions or divestitures and the
risks resulting therefrom; any supply chain disruptions impacting
our industry and business, market factors, Asbury's relationships
with, and the financial and operational stability of, vehicle
manufacturers and other suppliers, acts of God, acts of war or
other incidents and the shortage of semiconductor chips and other
components, which may adversely impact supply from vehicle
manufacturers and/or present retail sales challenges; risks
associated with Asbury's indebtedness and our ability to comply
with applicable covenants in our various financing agreements, or
to obtain waivers of these covenants as necessary; risks related to
competition in the automotive retail and service industries,
general economic conditions both nationally and locally,
governmental regulations, legislation, including changes in
automotive state franchise laws, adverse results in litigation and
other proceedings, and Asbury's ability to execute its strategic
and operational strategies and initiatives, including its five-year
strategic plan, Asbury's ability to leverage gains from its
dealership portfolio, Asbury's ability to capitalize on
opportunities to repurchase its debt and equity securities or
purchase properties that it currently leases, and Asbury's ability
to stay within its targeted range for capital expenditures. 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.
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 U.S. 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. These
forward-looking statements and such risks, uncertainties and other
factors speak only as of the date of this press release. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Disclosure and
Reconciliation, Same Store Data and Other Data
In addition to evaluating the financial condition and results of
our operations in accordance with GAAP, from time to time
management evaluates and analyzes results and any impact on the
Company of strategic decisions and actions relating to, among other
things, cost reduction, growth, and profitability improvement
initiatives, and other events outside of normal, or "core,"
business and operations, by considering certain alternative
financial measures not prepared in accordance with GAAP. These
measures include "Adjusted income from operations," "Adjusted net
income," "Adjusted operating margins," "Adjusted EBITDA," "Adjusted
diluted earnings per share ("EPS")," "Adjusted SG&A, "
"Adjusted operating cash flow" and "Pro forma adjusted leverage
ratio." Further, management assesses the organic growth of our
revenue and gross profit on a same store basis. We believe that our
assessment on a same store basis represents an important indicator
of comparative financial performance and provides relevant
information to assess our performance at our existing locations.
Non-GAAP measures do not have definitions under GAAP and may be
defined differently by and not be comparable to similarly titled
measures used by other companies. As a result, any non-GAAP
financial measures considered and evaluated by management are
reviewed in conjunction with a review of the most directly
comparable measures calculated in accordance with GAAP. Management
cautions investors not to place undue reliance on such non-GAAP
measures, but also to consider them with the most directly
comparable GAAP measures. In their evaluation of results from time
to time, management excludes items that do not arise directly from
core operations or are otherwise of an unusual or non-recurring
nature. Because these non-core, unusual or non-recurring charges
and gains materially affect Asbury's financial condition or results
in the specific period in which they are recognized, management
also evaluates, and makes resource allocation and performance
evaluation decisions based on, the related non-GAAP measures
excluding such items. In addition to using such non-GAAP measures
to evaluate results in a specific period, management believes that
such measures may provide more complete and consistent comparisons
of operational performance on a period-over-period historical basis
and a better indication of expected future trends. Management
discloses these non-GAAP measures, and the related reconciliations,
because it believes investors use these metrics in evaluating
longer-term period-over-period performance, and to allow investors
to better understand and evaluate the information used by
management to assess operating performance.
Same store amounts consist of information from dealerships for
identical months in each comparative period, commencing with the
first month we owned the dealership. Additionally, amounts related
to divested dealerships are excluded from each comparative
period.
Amounts presented herein have been calculated using non-rounded
amounts for all periods presented and therefore certain amounts may
not compute or tie to prior presentation due to rounding.
ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (In
millions, except per share data)
(Unaudited)
For the Three Months Ended
June 30,
% Change
For the Six Months Ended June
30,
% Change
2024
2023
2024
2023
REVENUE:
New vehicle
$
2,164.9
$
1,942.7
11
%
$
4,229.1
$
3,710.4
14
%
Used vehicle:
Retail
1,167.2
1,013.3
15
%
2,358.5
2,034.9
16
%
Wholesale
140.9
94.0
50
%
306.4
198.9
54
%
Total used vehicle
1,308.0
1,107.3
18
%
2,664.9
2,233.9
19
%
Parts and service
580.9
526.1
10
%
1,171.2
1,041.7
12
%
Finance and insurance, net
192.4
166.3
16
%
382.1
338.9
13
%
TOTAL REVENUE
4,246.2
3,742.5
13
%
8,447.4
7,324.8
15
%
COST OF SALES:
New vehicle
2,009.8
1,757.7
14
%
3,911.2
3,346.5
17
%
Used vehicle:
Retail
1,110.8
947.5
17
%
2,237.2
1,898.5
18
%
Wholesale
136.2
88.9
53
%
294.8
187.5
57
%
Total used vehicle
1,247.0
1,036.4
20
%
2,532.0
2,086.0
21
%
Parts and service
241.0
234.1
3
%
497.2
467.6
6
%
Finance and insurance
17.7
1.2
NM
26.3
15.5
70
%
TOTAL COST OF SALES
3,515.5
3,029.4
16
%
6,966.7
5,915.5
18
%
GROSS PROFIT
730.7
713.1
2
%
1,480.7
1,409.3
5
%
OPERATING EXPENSES:
Selling, general, and administrative
476.5
408.6
17
%
945.1
811.6
16
%
Depreciation and amortization
18.2
16.8
9
%
36.9
33.5
10
%
Asset impairments
135.4
—
—
%
135.4
—
—
%
INCOME FROM OPERATIONS
100.5
287.7
(65
)%
363.3
564.2
(36
)%
OTHER EXPENSES:
Floor plan interest expense
21.0
0.8
NM
43.8
1.5
NM
Other interest expense, net
45.1
39.3
15
%
89.2
76.6
16
%
Gain on dealership divestitures
(3.6
)
(13.5
)
(73
)%
(3.6
)
(13.5
)
(73
)%
Total other expenses, net
62.5
26.6
135
%
129.4
64.6
100
%
INCOME BEFORE INCOME TAXES
38.0
261.1
(85
)%
233.9
499.6
(53
)%
Income tax expense
9.9
64.8
(85
)%
58.7
121.9
(52
)%
NET INCOME
$
28.1
$
196.4
(86
)%
$
175.2
$
377.7
(54
)%
EARNINGS PER SHARE:
Basic—
Net income
$
1.40
$
9.37
(85
)%
$
8.66
$
17.78
(51
)%
Diluted—
Net income
$
1.39
$
9.34
(85
)%
$
8.64
$
17.70
(51
)%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic
20.1
20.9
20.2
21.2
Restricted stock
0.1
—
—
—
Performance share units
—
0.1
0.1
0.1
Diluted
20.2
21.0
20.3
21.3
______________________________
NM—Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures-Consolidated (In
millions)
(Unaudited)
June 30, 2024
December 31, 2023
Increase
(Decrease)
% Change
SELECTED BALANCE SHEET DATA
Cash and cash equivalents
$
67.2
$
45.7
$
21.5
47
%
Inventory, net (a)
2,066.0
1,768.3
297.7
17
%
Total current assets
3,218.3
3,057.1
161.2
5
%
Floor plan notes payable
1,420.1
1,785.7
(365.7
)
(20
)%
Total current liabilities
2,565.5
2,875.7
(310.2
)
(11
)%
CAPITALIZATION:
Long-term debt (including current
portion)
$
3,601.3
$
3,206.2
$
395.1
12
%
Shareholders' equity
3,330.7
3,244.1
86.6
3
%
Total
$
6,932.0
$
6,450.3
$
481.7
7
%
_____________________________
(a) Excluding $58.4 million and $84.5
million of inventory classified as assets held for sale as of June
30, 2024 and December 31, 2023, respectively.
June 30, 2024
December 31, 2023
June 30, 2023
Days
Supply
New vehicle inventory
72
43
32
Used vehicle inventory
38
32
35
_____________________________
Days supply of inventory is calculated
based on new and used inventory, in units, at the end of each
reporting period and a 30-day historical unit sales.
Brand Mix - New Vehicle Revenue by
Brand
For the Three Months Ended
June 30,
2024
2023
Luxury
Lexus
10
%
10
%
Mercedes-Benz
7
%
9
%
BMW
2
%
3
%
Land Rover
2
%
1
%
Porsche
2
%
2
%
Acura
1
%
2
%
Other luxury
4
%
5
%
Total luxury
29
%
32
%
Imports
Toyota
20
%
16
%
Honda
9
%
10
%
Hyundai
5
%
4
%
Nissan
2
%
3
%
Subaru
2
%
2
%
Kia
2
%
2
%
Other imports
2
%
2
%
Total imports
42
%
40
%
Domestic
Ford
13
%
10
%
Chrysler, Dodge, Jeep, Ram
9
%
13
%
Chevrolet, Buick, GMC
8
%
5
%
Total domestic
29
%
28
%
Total New Vehicle Revenue
100
%
100
%
For the Three Months Ended
June 30,
2024
2023
Revenue
mix
New vehicle
51.0
%
51.9
%
Used vehicle retail
27.5
%
27.1
%
Used vehicle wholesale
3.3
%
2.5
%
Parts and service
13.7
%
14.1
%
Finance and insurance, net
4.5
%
4.4
%
Total revenue
100.0
%
100.0
%
Gross profit
mix
New vehicle
21.2
%
25.9
%
Used vehicle retail
7.7
%
9.2
%
Used vehicle wholesale
0.6
%
0.7
%
Parts and service
46.5
%
41.0
%
Finance and insurance, net
23.9
%
23.2
%
Total gross profit
100.0
%
100.0
%
ASBURY AUTOMOTIVE GROUP, INC.
OPERATING HIGHLIGHTS-CONSOLIDATED (In
millions)
(Unaudited)
For the Three Months Ended
June 30,
% Change
For the Six Months Ended June
30,
% Change
2024
2023
2024
2023
Revenue
New vehicle
$
2,164.9
$
1,942.7
11
%
$
4,229.1
$
3,710.4
14
%
Used vehicle:
Retail
1,167.2
1,013.3
15
%
2,358.5
2,034.9
16
%
Wholesale
140.9
94.0
50
%
306.4
198.9
54
%
Total used vehicle
1,308.0
1,107.3
18
%
2,664.9
2,233.9
19
%
Parts and service
580.9
526.1
10
%
1,171.2
1,041.7
12
%
Finance and insurance, net
192.4
166.3
16
%
382.1
338.9
13
%
Total revenue
$
4,246.2
$
3,742.5
13
%
$
8,447.4
$
7,324.8
15
%
Gross
profit
New vehicle
$
155.1
$
185.0
(16
)%
$
317.9
$
363.9
(13
)%
Used vehicle:
Retail
56.4
65.8
(14
)%
121.4
136.5
(11
)%
Wholesale
4.6
5.1
(8
)%
11.6
11.4
1
%
Total used vehicle
61.0
70.9
(14
)%
132.9
147.9
(10
)%
Parts and service
339.9
292.0
16
%
674.0
574.1
17
%
Finance and insurance, net
174.7
165.2
6
%
355.8
323.4
10
%
Total gross profit
$
730.7
$
713.1
2
%
$
1,480.7
$
1,409.3
5
%
Unit
sales
New vehicle:
Luxury
8,719
8,925
(2
)%
17,297
17,354
—
%
Import
22,663
19,967
14
%
44,150
37,356
18
%
Domestic
11,297
9,368
21
%
21,909
18,056
21
%
Total new vehicle
42,679
38,260
12
%
83,356
72,766
15
%
Used vehicle retail
38,534
31,623
22
%
78,023
64,612
21
%
Used to new ratio
90.3
%
82.7
%
93.6
%
88.8
%
Average selling
price
New vehicle
$
50,725
$
50,776
—
%
$
50,736
$
50,990
—
%
Used vehicle retail
$
30,289
$
32,044
(5
)%
$
30,229
$
31,495
(4
)%
Average gross
profit per unit
New vehicle:
Luxury
$
6,830
$
7,785
(12
)%
$
7,021
$
8,175
(14
)%
Import
2,590
3,622
(28
)%
2,705
3,650
(26
)%
Domestic
3,260
4,612
(29
)%
3,516
4,745
(26
)%
Total new vehicle
3,633
4,835
(25
)%
3,814
5,001
(24
)%
Used vehicle retail
1,463
2,081
(30
)%
1,556
2,112
(26
)%
Finance and insurance
2,151
2,363
(9
)%
2,205
2,354
(6
)%
Front end yield (1)
4,755
5,952
(20
)%
4,927
5,996
(18
)%
Gross
margin
Total new vehicle
7.2
%
9.5
%
(236) bps
7.5
%
9.8
%
(229) bps
Used vehicle retail
4.8
%
6.5
%
(166) bps
5.1
%
6.7
%
(156) bps
Parts and service
58.5
%
55.5
%
301 bps
57.5
%
55.1
%
243 bps
Total gross profit margin
17.2
%
19.1
%
(185) bps
17.5
%
19.2
%
(171) bps
Operating
expenses
Selling, general, and administrative
$
476.5
$
408.6
17
%
$
945.1
$
811.6
16
%
Adjusted selling, general, and
administrative
$
473.5
$
406.1
17
%
$
942.1
$
809.1
16
%
SG&A as a % of gross profit
65.2
%
57.3
%
792 bps
63.8
%
57.6
%
624 bps
Adjusted SG&A as a % of gross
profit
64.8
%
57.0
%
784 bps
63.6
%
57.4
%
621 bps
Income from operations as a % of
revenue
2.4
%
7.7
%
(532) bps
4.3
%
7.7
%
(340) bps
Income from operations as a % of gross
profit
13.8
%
40.4
%
(2,659) bps
24.5
%
40.0
%
(1,550) bps
Adjusted income from operations as a % of
revenue
5.6
%
7.8
%
(213) bps
5.9
%
7.7
%
(180) bps
Adjusted income from operations as a % of
gross profit
32.7
%
40.7
%
(799) bps
33.9
%
40.2
%
(633) bps
_____________________________
(1) Front end yield is calculated as gross
profit from new vehicles, used retail vehicles and finance and
insurance (net), divided by combined new and used retail unit
sales.
ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING
HIGHLIGHTS-CONSOLIDATED (In millions)
(Unaudited)
For the Three Months Ended
June 30,
% Change
For the Six Months Ended June
30,
% Change
2024
2023
2024
2023
Revenue
New vehicle
$
1,814.5
$
1,927.4
(6
)%
$
3,550.5
$
3,676.3
(3
)%
Used vehicle:
Retail
926.9
1,001.8
(7
)%
1,885.5
2,006.1
(6
)%
Wholesale
103.6
92.8
12
%
232.2
196.8
18
%
Total used vehicle
1,030.5
1,094.7
(6
)%
2,117.7
2,202.9
(4
)%
Parts and service
510.8
520.6
(2
)%
1,029.4
1,030.0
—
%
Finance and insurance, net
157.7
165.4
(5
)%
312.2
336.8
(7
)%
Total revenue
$
3,513.5
$
3,708.2
(5
)%
$
7,009.9
$
7,245.9
(3
)%
Gross
profit
New vehicle
$
129.7
$
183.8
(29
)%
$
266.3
$
361.1
(26
)%
Used vehicle:
Retail
47.2
64.9
(27
)%
99.5
134.4
(26
)%
Wholesale
2.8
5.0
(45
)%
7.1
11.4
(38
)%
Total used vehicle
49.9
69.9
(29
)%
106.5
145.8
(27
)%
Parts and service
299.9
289.4
4
%
594.7
568.4
5
%
Finance and insurance, net
140.0
164.2
(15
)%
286.0
321.3
(11
)%
Total gross profit
$
619.5
$
707.4
(12
)%
$
1,253.6
$
1,396.7
(10
)%
Unit
sales
New vehicle:
Luxury
8,484
8,910
(5
)%
16,693
17,221
(3
)%
Import
18,982
19,680
(4
)%
36,917
36,747
—
%
Domestic
8,068
9,303
(13
)%
15,938
17,991
(11
)%
Total new vehicle
35,534
37,893
(6
)%
69,548
71,959
(3
)%
Used vehicle retail
30,371
31,141
(2
)%
61,942
63,348
(2
)%
Used to new ratio
85.5
%
82.2
%
89.1
%
88.0
%
Average selling
price
New vehicle
$
51,064
$
50,866
—
%
$
51,051
$
51,088
—
%
Used vehicle retail
$
30,518
$
32,171
(5
)%
$
30,440
$
31,668
(4
)%
Average gross
profit per unit
New vehicle:
Luxury
$
6,926
$
7,768
(11
)%
$
7,097
$
8,173
(13
)%
Import
2,387
3,639
(34
)%
2,482
3,671
(32
)%
Domestic
3,174
4,620
(31
)%
3,528
4,751
(26
)%
Total new vehicle
3,649
4,851
(25
)%
3,829
5,019
(24
)%
Used vehicle retail
1,553
2,085
(26
)%
1,606
2,122
(24
)%
Finance and insurance
2,124
2,379
(11
)%
2,175
2,374
(8
)%
Front end yield (1)
4,807
5,982
(20
)%
4,957
6,037
(18
)%
Gross
margin
Total new vehicle
7.1
%
9.5
%
(239) bps
7.5
%
9.8
%
(232) bps
Used vehicle retail
5.1
%
6.5
%
(139) bps
5.3
%
6.7
%
(142) bps
Parts and service
58.7
%
55.6
%
314 bps
57.8
%
55.2
%
259 bps
Total gross profit margin
17.6
%
19.1
%
(144) bps
17.9
%
19.3
%
(139) bps
Operating
expenses
Selling, general, and administrative
$
401.8
$
403.8
—
%
$
796.1
$
800.8
(1
)%
Adjusted selling, general, and
administrative
$
398.8
$
401.4
(1
)%
$
793.0
$
798.3
(1
)%
SG&A as a % of gross profit
64.9
%
57.1
%
778 bps
63.5
%
57.3
%
617 bps
Adjusted SG&A as a % of gross
profit
64.4
%
56.7
%
763 bps
63.3
%
57.2
%
610 bps
_____________________________
(1) Front end yield is calculated as gross
profit from new vehicles, used retail vehicles and finance and
insurance (net), divided by combined new and used retail unit
sales.
ASBURY AUTOMOTIVE GROUP, INC.
SEGMENT REPORTING (Unaudited)
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
Dealerships
TCA After Eliminations
Total Company
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
2,164.9
$
—
$
2,164.9
$
1,942.7
$
—
$
1,942.7
Used
1,308.0
—
1,308.0
1,107.3
—
1,107.3
Parts and service
591.9
(11.0
)
580.9
534.6
(8.5
)
526.1
Finance and insurance, net
154.7
37.7
192.4
134.2
32.2
166.3
Total revenue
$
4,219.5
$
26.7
$
4,246.2
$
3,718.8
$
23.7
$
3,742.5
Cost of sales
New
$
2,009.8
$
—
$
2,009.8
$
1,757.7
$
—
$
1,757.7
Used
1,247.0
—
1,247.0
1,036.4
—
1,036.4
Parts and service
255.9
(14.9
)
241.0
238.7
(4.6
)
234.1
Finance and insurance
—
17.7
17.7
—
1.2
1.2
Total cost of sales
$
3,512.7
$
2.8
$
3,515.5
$
3,032.9
$
(3.4
)
$
3,029.4
Gross profit
New
$
155.1
$
—
$
155.1
$
185.0
$
—
$
185.0
Used
61.0
—
61.0
70.9
—
70.9
Parts and service
336.0
3.8
339.9
295.9
(3.9
)
292.0
Finance and insurance, net
154.7
20.0
174.7
134.2
31.0
165.2
Total gross profit
$
706.8
$
23.9
$
730.7
$
686.0
$
27.1
$
713.1
Selling, general and
administrative
$
480.1
$
(3.6
)
$
476.5
$
416.6
$
(8.0
)
$
408.6
Income from operations
$
79.0
$
21.6
$
100.5
$
257.2
$
30.5
$
287.7
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
Dealerships
TCA After Eliminations
Total Company
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
4,229.1
$
—
$
4,229.1
$
3,710.4
$
—
$
3,710.4
Used
2,664.9
—
2,664.9
2,233.9
—
2,233.9
Parts and service
1,190.7
(19.5
)
1,171.2
1,059.1
(17.4
)
1,041.7
Finance and insurance, net
313.7
68.4
382.1
271.8
67.1
338.9
Total revenue
$
8,398.5
$
48.9
$
8,447.4
$
7,275.1
$
49.7
$
7,324.8
Cost of sales
New
$
3,911.2
$
—
$
3,911.2
$
3,346.5
$
—
$
3,346.5
Used
2,532.0
—
2,532.0
2,086.0
—
2,086.0
Parts and service
516.7
(19.5
)
497.2
477.1
(9.5
)
467.6
Finance and insurance
—
26.3
26.3
—
15.5
15.5
Total cost of sales
$
6,959.9
$
6.8
$
6,966.7
$
5,909.5
$
6.0
$
5,915.5
Gross profit
New
$
317.9
$
—
$
317.9
$
363.9
$
—
$
363.9
Used
132.9
—
132.9
147.9
—
147.9
Parts and service
674.0
—
674.0
582.1
(7.9
)
574.1
Finance and insurance, net
313.7
42.1
355.8
271.8
51.6
323.4
Total gross profit
$
1,438.6
$
42.1
$
1,480.7
$
1,365.6
$
43.7
$
1,409.3
Selling, general, and
administrative
$
953.0
$
(7.9
)
$
945.1
$
823.5
$
(11.9
)
$
811.6
Income from operations
$
322.2
$
41.0
$
363.3
$
513.3
$
50.9
$
564.2
ASBURY AUTOMOTIVE GROUP, INC.
Supplemental Disclosures
(Unaudited)
The following tables provide
reconciliations for our non-GAAP metrics:
For the Three Months
Ended
For the Twelve Months
Ended
June 30, 2024
June 30, 2023
June 30, 2024
March 31, 2024
(Dollars in millions)
Adjusted leverage
ratio:
Long-term debt
$
3,601.3
$
3,192.6
Cash and floor plan offset
(478.6
)
(234.1
)
TCA cash
14.7
9.2
Availability under our used vehicle floor
plan facility
(286.1
)
(1.4
)
Adjusted long-term net debt
$
2,851.2
$
2,966.2
Calculation of earnings before interest,
taxes, depreciation and amortization ("EBITDA"):
Net income
$
28.1
$
196.4
$
400.0
$
568.2
Depreciation and amortization
18.2
16.8
71.1
69.7
Income tax expense
9.9
64.8
135.5
190.4
Swap and other interest expense
45.2
40.2
169.1
164.1
Earnings before interest, taxes,
depreciation and amortization ("EBITDA")
$
101.4
$
318.1
$
775.7
$
992.4
Non-core items - expense (income):
Gain on dealership divestitures
$
(3.6
)
$
(13.5
)
$
(3.6
)
$
(13.5
)
Gain on sale of real estate
—
—
(3.6
)
(3.6
)
Legal settlement
—
(1.9
)
—
(1.9
)
Asset impairments
135.4
—
252.6
117.2
Professional fees associated with
acquisition
—
—
4.1
4.1
Fixed assets write-off
—
—
1.1
1.1
Hail damage
3.1
4.3
3.1
4.3
Total non-core items
134.8
(11.1
)
253.7
107.8
Adjusted EBITDA
$
236.3
$
307.0
$
1,029.5
$
1,100.2
Pro forma impact of acquisition and
divestitures on EBITDA
$
26.6
$
55.5
Pro forma adjusted EBITDA
$
1,056.1
$
1,155.7
Pro forma adjusted net leverage ratio
2.7
2.6
Three Months Ended June 30,
2024
GAAP
Gain on dealership
divestitures
Asset impairments
Hail damage
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
476.5
$
—
$
—
$
(3.1
)
$
—
$
473.5
Income from operations
$
100.5
$
—
$
135.4
$
3.1
$
—
$
238.9
Net income
$
28.1
$
(3.6
)
$
135.4
$
3.1
$
(33.8
)
$
129.1
Weighted average common share outstanding
- diluted
20.2
20.2
Diluted EPS
$
1.39
$
(0.13
)
5.02
$
0.11
$
—
$
6.40
SG&A as a % of gross profit
65.2
%
64.8
%
Income from operations as a % of
revenue
2.4
%
5.6
%
Three Months Ended June 30,
2023
GAAP
Gain on dealership
divestitures
Legal settlement
Hail damage
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
408.6
$
—
$
1.9
$
(4.3
)
$
—
$
406.1
Income from operations
$
287.7
$
—
$
(1.9
)
$
4.3
$
—
$
290.2
Net income
$
196.4
$
(13.5
)
$
(1.9
)
$
4.3
$
2.7
$
188.0
Weighted average common share outstanding
- diluted
21.0
21.0
Diluted EPS
$
9.34
$
(0.48
)
$
(0.07
)
$
0.15
$
—
$
8.95
SG&A as a % of gross profit
57.3
%
57.0
%
Income from operations as a % of
revenue
7.7
%
7.8
%
Six Months Ended June 30,
2024
GAAP
Gain on dealership
divestitures
Asset impairments
Hail damage
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general, and administrative
$
945.1
$
—
$
—
$
(3.1
)
$
—
$
942.1
Income from operations
$
363.3
$
—
$
135.4
$
3.1
$
—
$
501.7
Net income
$
175.2
$
(3.6
)
$
135.4
$
3.1
$
(33.8
)
$
276.2
Weighted average common share outstanding
- diluted
20.3
20.3
Diluted EPS
$
8.64
$
(0.13
)
$
5.00
$
0.11
$
—
$
13.62
SG&A as a % of gross profit
63.8
%
63.6
%
Income from operations as a % of
revenue
4.3
%
5.9
%
Six Months Ended June 30,
2023
GAAP
Gain on dealership
divestitures
Legal settlement
Hail damage
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general, and administrative
$
811.6
$
—
$
1.9
$
(4.3
)
$
—
$
809.1
Income from operations
$
564.2
$
—
$
(1.9
)
$
4.3
$
—
$
566.7
Net income
$
377.7
$
(13.5
)
$
(1.9
)
$
4.3
$
2.7
$
369.4
Weighted average common share outstanding
- diluted
21.3
21.3
Diluted EPS
$
17.70
$
(0.48
)
$
(0.07
)
$
0.15
$
—
$
17.31
SG&A as a % of gross profit
57.6
%
57.4
%
Income from operations as a % of
revenue
7.7
%
7.7
%
For the Six Months Ended June
30,
2024
2023
(In millions)
Adjusted cash
flow from operations:
Cash provided by operating activities
$ 22.7
$ 221.7
Change in Floor Plan Notes
Payable—Non-Trade, net
59.9
(2.8)
Change in Floor Plan Notes
Payable—Non-Trade associated with floor plan offset, used vehicle
borrowing base changes adjusted for acquisition and
divestitures
170.7
171.8
Change in Floor Plan Notes Payable—Trade
associated with floor plan offset, adjusted for acquisition and
divestitures
148.7
27.6
Adjusted cash flow provided by operating
activities
$ 402.0
$ 418.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240802996930/en/
Investors & Reporters May Contact: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
Asbury Automotive (NYSE:ABG)
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