Asbury Automotive Group Reports Record Fourth Quarter Results

Rhea-AI Summary

Asbury Automotive Group (NYSE: ABG) reported record fourth quarter results for 2024, with total revenue reaching an all-time high of $4.5 billion, up 18% year-over-year. Net income increased 132% to $129 million ($6.54 per diluted share), while adjusted net income was $143 million ($7.26 per diluted share).

Key highlights include record Parts & Service gross profit of $340 million, up 19%, with same-store growth of 11%. The company demonstrated improved operational efficiency with same-store SG&A as a percentage of gross profit at 63.0%. New vehicle unit volume increased 18%, while used vehicle retail unit volume grew 15%.

For full-year 2024, ABG reported net income of $430 million ($21.50 per diluted share) and record revenue of $17.2 billion. The company maintained strong liquidity of $828 million and repurchased approximately 830,000 shares for $183 million during 2024.

Positive

• Record quarterly revenue of $4.5 billion (+18% YoY)
• Net income increased 132% to $129 million
• Parts & Service gross profit grew 19% to $340 million
• New vehicle unit volume up 18%
• Used vehicle retail unit volume increased 15%
• Improved SG&A efficiency for second consecutive quarter

Negative

• Full-year net income decreased 25% YoY
• Adjusted EPS declined 16% YoY
• Gross margin decreased 101 bps to 16.6%
• F&I per vehicle retailed decreased 3%
• Same-store used vehicle retail unit volume declined 1%

Insights

Financial Analyst

Asbury Automotive Group's Q4 2024 results reveal a complex picture of growth and operational efficiency gains, albeit with some margin pressure. The headline 18% revenue growth to $4.5 billion masks important underlying trends:

Key Performance Indicators:

• Same-store revenue growth of 6% indicates solid organic performance, though notably lower than total growth
• Parts & Service segment emerges as a standout performer with 19% gross profit growth, demonstrating strong execution in this high-margin business
• Margin compression evident with total gross margin declining 101 basis points to 16.6%, reflecting competitive pressures
• Operational efficiency improvements shown through reduced SG&A as percentage of gross profit at 63.0%

The company's focus on operational efficiency is paying dividends, with back-to-back quarterly improvements in SG&A metrics. However, the 3% decline in F&I per vehicle retailed to $2,236 and used vehicle retail gross profit decrease of 2% suggest challenges in maintaining profitability in key profit centers.

The balance sheet remains robust with $828 million in total liquidity and a manageable transaction adjusted net leverage ratio of 2.85x. The ongoing share repurchase program, with $276 million remaining authorization, provides potential support for shareholder returns while maintaining strategic flexibility.

These results indicate Asbury is effectively navigating the evolving auto retail landscape through operational discipline, though facing some headwinds in maintaining per-unit profitability metrics.

• All-time record quarterly revenue of $4.5 billion, growth of 18%

• All-time record Parts & Service gross profit of $340 million, growth of 19%; same store Parts & Service gross profit growth of 11%

• Same store SG&A as a percentage of gross profit of 63.0%; same store adjusted SG&A as a percentage of gross profit, a non-GAAP measure, of 62.0%

• Back-to-back quarters of improved SG&A as a percentage of gross profit and adjusted SG&A as a percentage of gross profit, a non-GAAP measure; 137 bps and 141 bps, respectively, versus third quarter 2024

• EPS of $6.54 per diluted share; adjusted EPS, a non-GAAP measure, of $7.26 per diluted share

DULUTH, Ga.--(BUSINESS WIRE)-- Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one of the largest automotive retail and service companies in the U.S., reported fourth quarter 2024 net income of $129 million ($6.54 per diluted share), an increase of 132% from $56 million ($2.70 per diluted share) in fourth quarter 2023. The Company reported fourth quarter 2024 adjusted net income, a non-GAAP measure, of $143 million ($7.26 per diluted share), a decrease of 2% from $146 million ($7.12 per diluted share) in fourth quarter 2023.

“Asbury delivered strong fourth quarter results, setting records for total revenue, and growing our Parts & Service gross profit by double digits,” said David Hult, Asbury’s President and Chief Executive Officer. “Our results also showcased our commitment to operating the business efficiently, delivering lower SG&A costs as a percent of gross profit for the second quarter in a row. Our results are a testament to the hard work of our exceptional team members and further affirm our confidence in the company’s strategic growth plan and investments in people and technology.”

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 fourth quarter 2024 excludes, net of tax, $11 million of non-cash asset impairments ($0.55 per diluted share), $5 million of losses related to Hurricane Milton ($0.25 per diluted share), and $1 million related to proceeds from the termination of a franchise ($0.07 per diluted share).

Adjusted net income for fourth quarter 2023 excludes, net of tax, $88 million ($4.29 per diluted share) of non-cash asset impairments, $1 million ($0.04 per diluted share) of non-cash fixed asset write-offs, and $2 million ($0.09 per diluted share) of professional fees related to the acquisition of the Jim Koons Automotive Companies.

Fourth Quarter 2024 Operational Summary

Total Company vs. 4^th Quarter 2023:

• Revenue of $4.5 billion, increase of 18%

• Gross profit of $750 million, increase of 11%

• Gross margin decreased 101 bps to 16.6%

• New vehicle unit volume increase of 18%; new vehicle revenue increase of 19%; new vehicle gross profit increase of 1%

• Used vehicle retail unit volume increase of 15%; used vehicle retail revenue increase of 14%; used vehicle retail gross profit decrease of 2%

• Finance and insurance (F&I) per vehicle retailed (PVR) of $2,236, decrease of 3%

• Parts and service revenue increase of 15%; gross profit increase of 19%

• SG&A as a percentage of gross profit of 63.6%

• Adjusted SG&A as a percentage of gross profit of 63.0%

• Operating margin of 5.3%

• Adjusted operating margin of 5.7%

Same Store vs. 4^th Quarter 2023:

• Revenue of $3.8 billion, increase of 6%

• Gross profit of $649 million, increase of 2%

• Gross margin decreased 70 bps to 17.0%

• New vehicle unit volume increase of 7%; new vehicle revenue increase of 8%; new vehicle gross profit decrease of 9%

• Used vehicle retail unit volume decrease of 1%; used vehicle retail revenue decrease of 1%; used vehicle retail gross profit decrease of 6%

• F&I PVR of $2,238, decrease of 3%

• Parts and service revenue increase of 6%; gross profit increase of 11%

• SG&A as a percentage of gross profit of 63.0%

• Adjusted SG&A as a percentage of gross profit of 62.0%

• Operating margin of 5.5%

• Adjusted operating margin of 6.0%

Full Year 2024 Results

For the full year 2024, the Company reported net income of $430 million ($21.50 per diluted share) compared to $603 million ($28.74 per diluted share) in the prior year, a 25% decrease in EPS. Adjusted net income (a non-GAAP measure) for 2024 was $545 million ($27.24 per diluted share) compared to $684 million ($32.60 per diluted share) in the prior year, a 16% decrease in adjusted EPS.

Total revenue for the full year 2024 was an all-time record of $17.2 billion, an increase of 16%; total revenue on a same-store basis decreased 1%. Total adjusted EBITDA for the full year 2024 was $982 million, a decrease of 13% from the prior year. Adjusted operating cash flow for the full year was $688 million, a decrease of 2% from the prior year.

Liquidity and Leverage

As of December 31, 2024, the Company had cash and floorplan offset accounts of $156 million (which excludes $30 million of cash at Total Care Auto, Powered by Landcar) and availability under the used vehicle floorplan line and revolver of $672 million for a total of $828 million in liquidity. The Company’s transaction adjusted net leverage ratio, which is calculated as set forth in our credit facility, was 2.85x at quarter end.

Share Repurchases

For the full year 2024, the Company has repurchased approximately 830,000 shares for $183 million. As of December 31, 2024, the Company had approximately $276 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 fourth quarter results will be provided during the earnings conference call on Thursday, January 30, 2025, 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:	13751028

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 December 31, 2024, Asbury operated 152 new vehicle dealerships, consisting of 198 franchises and 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 is recognized as one of America’s Fastest Growing Companies 2024 by the Financial Times and the Company is listed in World’s Most Trustworthy Companies 2024 by Newsweek.

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, beliefs, expectations and assumptions, projections regarding Asbury's financial position, liquidity, results of operations, cash flows, leverage, market position, 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, adverse outcomes with respect to current and future litigation and other proceedings; 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, natural disasters including hurricanes, 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 and legislation, including changes in automotive state franchise laws; our ability to execute its strategic and operational strategies and initiatives, including Asbury’s five-year strategic plan; our ability to leverage gains from Asbury’s dealership portfolio; our ability to capitalize on opportunities to repurchase Asbury’s debt and equity securities or purchase properties that Asbury currently leases; and our ability to stay within Asbury’s 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," "Transaction adjusted EBITDA" and "Transaction adjusted net 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.

Due to the significant effects that dealership acquisitions and divestitures have on our results of operations, and in order to provide more meaningful comparisons, we present herein "Transaction adjusted EBITDA" and "Transaction adjusted net leverage ratio" (collectively, the "Transaction Adjusted Metrics"), which reflect the effects of the dealership acquisitions and divestitures, if any, as if they had occurred on the first day of the last twelve-month periods being presented. For acquisitions, the pre-acquisition period amount being included in Transaction adjusted EBITDA is determined by pro-rating the forecasted adjusted EBITDA for the year following the acquisition. For divestitures, including divestitures due to requirements in connection with an acquisition, the adjusted EBITDA associated with the divestiture(s) is excluded from Transaction adjusted EBITDA. We believe the Transaction Adjusted Metrics provide relevant information to assess our performance at our existing dealership locations for the last twelve-month periods being presented.

The Transaction Adjusted Metrics do not include any adjustments for other events attributable to the dealership acquisitions or divestitures unless otherwise described. We cannot assure you that such financial information would not be materially different if such information were audited or that our actual results would not differ materially from the Transaction Adjusted Metrics if the dealership acquisitions or divestitures had been completed as of the beginning of the last twelve-month periods being presented.

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 December 31,						% Change			For the Twelve Months Ended December 31,								% Change
		2024			2023						2024				2023
REVENUE:
New vehicle	$	2,457.1		$	2,058.5		19	%		$	8,849.7			$	7,630.7			16	%
Used vehicle:
Retail		1,098.9			965.8		14	%			4,605.9				4,017.5			15	%
Wholesale		159.6			102.9		55	%			612.3				396.7			54	%
Total used vehicle		1,258.5			1,068.7		18	%			5,218.2				4,414.3			18	%
Parts and service		590.4			513.4		15	%			2,354.7				2,081.5			13	%
Finance and insurance, net		198.5			171.2		16	%			766.0				676.2			13	%
TOTAL REVENUE		4,504.5			3,811.7		18	%			17,188.6				14,802.7			16	%
COST OF SALES:
New vehicle		2,285.0			1,887.6		21	%			8,209.3				6,927.8			18	%
Used vehicle:
Retail		1,047.7			913.5		15	%			4,377.3				3,769.0			16	%
Wholesale		157.7			101.2		56	%			595.4				381.2			56	%
Total used vehicle		1,205.4			1,014.6		19	%			4,972.7				4,150.2			20	%
Parts and service		250.4			228.1		10	%			1,003.5				931.0			8	%
Finance and insurance		13.9			8.3		66	%			54.4				37.9			43	%
TOTAL COST OF SALES		3,754.7			3,138.7		20	%			14,240.0				12,046.9			18	%
GROSS PROFIT		749.9			673.0		11	%			2,948.6				2,755.8			7	%
OPERATING EXPENSES:
Selling, general, and administrative		476.9			414.0		15	%			1,888.5				1,617.4			17	%
Depreciation and amortization		19.2			17.2		12	%			75.0				67.7			11	%
Asset impairments		14.1			117.2		(88	)%			149.5				117.2			28	%
INCOME FROM OPERATIONS		239.7			124.6		92	%			835.6				953.5			(12	)%
OTHER EXPENSES:
Floor plan interest expense		23.7			8.2		190	%			89.9				9.6			NM
Other interest expense, net		44.2			40.8		9	%			179.1				156.1			15	%
Gain on dealership divestitures, net		—			—		—	%			(8.6	)			(13.5	)		(36	)%
Total other expenses, net		68.0			48.9		39	%			260.3				152.2			71	%
INCOME BEFORE INCOME TAXES		171.7			75.6		127	%			575.3				801.3			(28	)%
Income tax expense		42.9			20.1		114	%			145.0				198.8			(27	)%
NET INCOME	$	128.8		$	55.5		132	%		$	430.3			$	602.5			(29	)%
EARNINGS PER SHARE:
Basic—
Net income	$	6.58		$	2.72		142	%		$	21.58			$	28.87			(25	)%
Diluted—
Net income	$	6.54		$	2.70		142	%		$	21.50			$	28.74			(25	)%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		19.6			20.4						19.9				20.9
Restricted stock		0.1			—						—				—
Performance share units		—			0.1						0.1				0.1
Diluted		19.7			20.5						20.0				21.0
_____________________________ NM—Not Meaningful

ASBURY AUTOMOTIVE GROUP, INC. Additional Disclosures-Consolidated (In millions) (Unaudited)
	December 31, 2024			December 31, 2023			Increase (Decrease)				% Change
SELECTED BALANCE SHEET DATA
Cash and cash equivalents	$	69.4		$	45.7		$	23.7			52	%
Inventory, net (a)		1,978.8			1,768.3			210.5			12	%
Total current assets		3,137.9			3,057.1			80.9			3	%
Floor plan notes payable		1,694.7			1,785.7			(91.0	)		(5	)%
Total current liabilities		2,836.3			2,875.7			(39.4	)		(1	)%
CAPITALIZATION:
Long-term debt (including current portion)	$	3,138.6		$	3,206.2		$	(67.6	)		(2	)%
Shareholders' equity		3,502.1			3,244.1			257.9			8	%
Total	$	6,640.7		$	6,450.3		$	190.4			3	%
_____________________________ (a) Excluding $58.7 million and $84.5 million of inventory classified as assets held for sale as of December 31, 2024 and December 31, 2023, respectively.

	December 31, 2024		September 30, 2024		December 31, 2023
Days Supply
New vehicle inventory	49		63		43
Used vehicle inventory	37		38		32
_____________________________ 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 December 31,
	2024			2023
Luxury
Lexus	10	%		12	%
Mercedes-Benz	8	%		8	%
BMW	3	%		3	%
Land Rover	2	%		2	%
Porsche	2	%		2	%
Acura	2	%		1	%
Other luxury	4	%		5	%
Total luxury	32	%		34	%
Imports
Toyota	18	%		18	%
Honda	8	%		9	%
Hyundai	6	%		4	%
Nissan	2	%		2	%
Subaru	2	%		2	%
Kia	2	%		1	%
Other imports	2	%		2	%
Total imports	40	%		39	%
Domestic
Ford	13	%		10	%
Chrysler, Dodge, Jeep, Ram	8	%		11	%
Chevrolet, Buick, GMC	8	%		6	%
Total domestic	28	%		27	%
Total New Vehicle Revenue	100	%		100	%

	For the Three Months Ended December 31,
	2024			2023
Revenue mix
New vehicle	54.5	%		54.0	%
Used vehicle retail	24.4	%		25.3	%
Used vehicle wholesale	3.5	%		2.7	%
Parts and service	13.1	%		13.5	%
Finance and insurance, net	4.4	%		4.5	%
Total revenue	100.0	%		100.0	%
Gross profit mix
New vehicle	22.9	%		25.4	%
Used vehicle retail	6.8	%		7.8	%
Used vehicle wholesale	0.3	%		0.3	%
Parts and service	45.3	%		42.4	%
Finance and insurance, net	24.6	%		24.2	%
Total gross profit	100.0	%		100.0	%

ASBURY AUTOMOTIVE GROUP, INC. OPERATING HIGHLIGHTS-CONSOLIDATED (In millions) (Unaudited)
	For the Three Months Ended December 31,								% Change			For the Twelve Months Ended December 31,								% Change
		2024				2023							2024				2023
Revenue
New vehicle	$	2,457.1			$	2,058.5			19	%		$	8,849.7			$	7,630.7			16	%
Used vehicle:
Retail		1,098.9				965.8			14	%			4,605.9				4,017.5			15	%
Wholesale		159.6				102.9			55	%			612.3				396.7			54	%
Total used vehicle		1,258.5				1,068.7			18	%			5,218.2				4,414.3			18	%
Parts and service		590.4				513.4			15	%			2,354.7				2,081.5			13	%
Finance and insurance, net		198.5				171.2			16	%			766.0				676.2			13	%
Total revenue	$	4,504.5			$	3,811.7			18	%		$	17,188.6			$	14,802.7			16	%
Gross profit
New vehicle	$	172.1			$	170.8			1	%		$	640.4			$	703.0			(9	)%
Used vehicle:
Retail		51.2				52.3			(2	)%			228.6				248.5			(8	)%
Wholesale		1.9				1.8			8	%			16.8				15.5			9	%
Total used vehicle		53.1				54.0			(2	)%			245.4				264.0			(7	)%
Parts and service		340.1				285.3			19	%			1,351.2				1,150.6			17	%
Finance and insurance, net		184.6				162.8			13	%			711.6				638.2			11	%
Total gross profit	$	749.9			$	673.0			11	%		$	2,948.6			$	2,755.8			7	%
Unit sales
New vehicle:
Luxury		10,579				9,697			9	%			36,827				35,300			4	%
Import		24,593				20,725			19	%			91,243				77,740			17	%
Domestic		12,083				9,475			28	%			45,148				36,469			24	%
Total new vehicle		47,255				39,897			18	%			173,218				149,509			16	%
Used vehicle retail		35,328				30,778			15	%			150,698				127,507			18	%
Used to new ratio		74.8	%			77.1	%						87.0	%			85.3	%
Average selling price
New vehicle	$	51,996			$	51,595			1	%		$	51,090			$	51,038			—	%
Used vehicle retail	$	31,106			$	31,378			(1	)%		$	30,564			$	31,508			(3	)%
Average gross profit per unit
New vehicle:
Luxury	$	7,118			$	7,281			(2	)%		$	7,018			$	7,770			(10	)%
Import		2,495				2,966			(16	)%			2,601				3,419			(24	)%
Domestic		2,931				4,090			(28	)%			3,203				4,466			(28	)%
Total new vehicle		3,641				4,282			(15	)%			3,697				4,702			(21	)%
Used vehicle retail		1,449				1,699			(15	)%			1,517				1,949			(22	)%
Finance and insurance		2,236				2,304			(3	)%			2,197				2,304			(5	)%
Front end yield (1)		4,939				5,461			(10	)%			4,880				5,739			(15	)%
Gross margin
Total new vehicle		7.0	%			8.3	%		(130)	bps			7.2	%			9.2	%		(198)	bps
Used vehicle retail		4.7	%			5.4	%		(75)	bps			5.0	%			6.2	%		(122)	bps
Parts and service		57.6	%			55.6	%		202	bps			57.4	%			55.3	%		211	bps
Total gross profit margin		16.6	%			17.7	%		(101)	bps			17.2	%			18.6	%		(146)	bps
Operating expenses
Selling, general, and administrative	$	476.9			$	414.0			15	%		$	1,888.5			$	1,617.4			17	%
Adjusted selling, general, and administrative	$	472.4			$	410.5			15	%		$	1,877.0			$	1,613.2			16	%
SG&A as a % of gross profit		63.6	%			61.5	%		208	bps			64.0	%			58.7	%		536	bps
Adjusted SG&A as a % of gross profit		63.0	%			61.0	%		200	bps			63.7	%			58.5	%		512	bps
Income from operations as a % of revenue		5.3	%			3.3	%		205	bps			4.9	%			6.4	%		(158)	bps
Income from operations as a % of gross profit		32.0	%			18.5	%		1,345	bps			28.3	%			34.6	%		(626)	bps
Adjusted income from operations as a % of revenue		5.7	%			6.4	%		(70)	bps			5.8	%			7.3	%		(146)	bps
Adjusted income from operations as a % of gross profit		34.4	%			36.4	%		(200)	bps			33.8	%			39.0	%		(520)	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 December 31,								% Change			For the Twelve Months Ended December 31,								% Change
		2024				2023							2024				2023
Revenue
New vehicle	$	2,108.0			$	1,943.3			8	%		$	7,454.9			$	7,426.4			—	%
Used vehicle:
Retail		896.8				902.8			(1	)%			3,686.6				3,897.7			(5	)%
Wholesale		116.2				96.0			21	%			449.4				378.8			19	%
Total used vehicle		1,013.0				998.8			1	%			4,136.0				4,276.5			(3	)%
Parts and service		521.7				490.7			6	%			2,064.2				2,028.3			2	%
Finance and insurance, net		167.4				161.1			4	%			630.4				660.7			(5	)%
Total revenue	$	3,810.0			$	3,594.0			6	%		$	14,285.5			$	14,392.0			(1	)%
Gross profit
New vehicle	$	147.4			$	161.8			(9	)%		$	537.6			$	687.5			(22	)%
Used vehicle:
Retail		44.9				48.0			(6	)%			190.5				240.7			(21	)%
Wholesale		1.2				1.7			(25	)%			10.8				15.6			(31	)%
Total used vehicle		46.2				49.7			(7	)%			201.2				256.2			(21	)%
Parts and service		301.9				273.0			11	%			1,188.3				1,122.8			6	%
Finance and insurance, net		153.5				152.8			—	%			576.0				622.8			(8	)%
Total gross profit	$	649.0			$	637.3			2	%		$	2,503.2			$	2,689.4			(7	)%
Unit sales
New vehicle:
Luxury		10,352				9,542			8	%			35,775				34,947			2	%
Import		21,104				19,316			9	%			76,662				74,509			3	%
Domestic		8,803				8,641			2	%			32,362				35,447			(9	)%
Total new vehicle		40,259				37,499			7	%			144,799				144,903			—	%
Used vehicle retail		28,357				28,657			(1	)%			119,297				123,007			(3	)%
Used to new ratio		70.4	%			76.4	%						82.4	%			84.9	%
Average selling price
New vehicle	$	52,360			$	51,824			1	%		$	51,484			$	51,251			—	%
Used vehicle retail	$	31,625			$	31,504			—	%		$	30,902			$	31,687			(2	)%
Average gross profit per unit
New vehicle:
Luxury	$	7,172			$	7,311			(2	)%		$	7,096			$	7,789			(9	)%
Import		2,266				2,931			(23	)%			2,377				3,441			(31	)%
Domestic		2,878				4,096			(30	)%			3,137				4,483			(30	)%
Total new vehicle		3,661				4,314			(15	)%			3,713				4,745			(22	)%
Used vehicle retail		1,584				1,675			(5	)%			1,597				1,957			(18	)%
Finance and insurance		2,238				2,310			(3	)%			2,181				2,325			(6	)%
Front end yield (1)		5,040				5,481			(8	)%			4,938				5,789			(15	)%
Gross margin
Total new vehicle		7.0	%			8.3	%		(133)	bps			7.2	%			9.3	%		(205)	bps
Used vehicle retail		5.0	%			5.3	%		(31)	bps			5.2	%			6.2	%		(101)	bps
Parts and service		57.9	%			55.6	%		224	bps			57.6	%			55.4	%		221	bps
Total gross profit margin		17.0	%			17.7	%		(70)	bps			17.5	%			18.7	%		(116)	bps
Operating expenses
Selling, general, and administrative	$	408.6			$	389.1			5	%		$	1,590.4			$	1,566.7			2	%
Adjusted selling, general, and administrative	$	402.2			$	388.0			4	%		$	1,577.0			$	1,566.7			1	%
SG&A as a % of gross profit		63.0	%			61.1	%		189	bps			63.5	%			58.3	%		528	bps
Adjusted SG&A as a % of gross profit		62.0	%			60.9	%		109	bps			63.0	%			58.3	%		474	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)
	For the Three Months Ended December 31, 2024										For the Three Months Ended December 31, 2023
	Dealerships			TCA			Total				Dealerships			TCA			Total
	(In millions)
Revenue from external customers	$	4,427.4		$	77.1		$	4,504.5			$	3,737.6		$	74.1		$	3,811.7
Intersegment revenue		55.5			—			55.5				47.3			—			47.3
	$	4,483.0		$	77.1		$	4,560.1			$	3,785.0		$	74.1		$	3,859.0
Reconciliation of revenue
Elimination of inter-segment revenue								(55.5	)									(47.3	)
Total consolidated revenue							$	4,504.5									$	3,811.7
Less:
Cost of sales
New vehicle		2,285.0			—							1,887.6			—
Used vehicle		1,205.4			—							1,014.6			—
Parts and service		260.2			—							232.6			—
Finance and insurance		—			57.7							—			56.5
Selling, general and administrative expenses
Personnel costs		317.0			—							277.0			—
Rent and related expenses		39.2			—							29.0			—
Advertising		14.0			—							13.7			—
Other selling, general and administrative expense		108.9			—							99.0			—
Other segment items		—			1.9							—			1.7
Depreciation and amortization		19.1			0.1							17.0			0.2
Floor plan interest expense		23.7			—							8.2			—
Segment operating income*	$	210.5		$	17.4		$	227.9			$	206.2		$	15.7		$	221.9
Reconciliation of segment operating income
Intersegment eliminations
Total intersegment revenue eliminations								(55.5	)									(47.3	)
Total intersegment cost of sales eliminations								53.6										52.6
Deferral of SG&A expense (related to capitalized contract costs offset by amortization)								4.1										6.3
Total intersegment eliminations								2.1										11.6
Asset impairments								(14.1	)									(117.2	)
Other interest expense, net								(44.2	)									(40.8	)
Income before income taxes							$	171.7									$	75.6
______________________________ *Segment operating income is calculated as GAAP operating income, excluding the effects of asset impairments and including floor plan interest expense.

	For the Twelve Months Ended December 31, 2024										For the Twelve Months Ended December 31, 2023
	Dealerships			TCA			Total				Dealerships			TCA			Total
	(In millions)
Revenue from external customers	$	16,885.0		$	303.6		$	17,188.6			$	14,517.5		$	285.2		$	14,802.7
Intersegment revenue		222.5			—			222.5				181.5			—			181.5
	$	17,107.5		$	303.6		$	17,411.1			$	14,699.0		$	285.2		$	14,984.2
Reconciliation of revenue
Elimination of inter-segment revenue								(222.5	)									(181.5	)
Total consolidated revenue							$	17,188.6									$	14,802.7
Less:
Cost of sales
New vehicle		8,209.3			—							6,927.8			—
Used vehicle		4,972.7			—							4,150.2			—
Parts and service		1,043.0			—							949.9			—
Finance and insurance		—			223.4							—			208.1
Selling, general and administrative expenses
Personnel costs		1,256.2			—							1,106.5			—
Rent and related expenses		142.3			—							118.7			—
Advertising		61.8			—							47.3			—
Other selling, general and administrative expense		441.0			—							366.0			—
Other segment items		—			7.0							—			7.4
Depreciation and amortization		74.6			0.4							67.1			0.7
Floor plan interest expense		89.9			—							9.6			—
Segment operating income*	$	816.7		$	72.8		$	889.5			$	955.9		$	69.0		$	1,025.0
Reconciliation of segment operating income
Intersegment eliminations
Total intersegment revenue eliminations								(222.5	)									(181.5	)
Total intersegment cost of sales eliminations								208.5										189.1
Deferral of SG&A expense (related to capitalized contract costs offset by amortization)								19.7										28.5
Total intersegment eliminations								5.8										36.1
Asset impairments								(149.5	)									(117.2	)
Other interest expense, net								(179.1	)									(156.1	)
Gain on dealership divestitures, net								8.6										13.5
Income before income taxes							$	575.3									$	801.3
______________________________ *Segment operating income is calculated as GAAP operating income, excluding the effects of asset impairments and including floor plan interest expense.

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
	December 31, 2024				December 31, 2023			December 31, 2024				September 30, 2024
	(Dollars in millions)
Adjusted leverage ratio:
Long-term debt								$	3,138.6			$	3,382.8
Cash and floor plan offset									(186.1	)			(257.5	)
TCA cash									30.5				55.6
Availability under our used vehicle floor plan facility									(186.1	)			(310.3	)
Adjusted long-term net debt								$	2,796.9			$	2,870.6
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"):
Net income	$	128.8			$	55.5		$	430.3			$	357.1
Depreciation and amortization		19.2				17.2			75.0				73.0
Income tax expense		42.9				20.1			145.0				122.2
Swap and other interest expense		44.3				41.1			179.3				176.1
Earnings before interest, taxes, depreciation and amortization ("EBITDA")	$	235.2			$	133.9		$	829.6			$	728.3
Non-core items - expense (income):
Gain on dealership divestitures	$	—			$	—		$	(8.6	)		$	(8.6	)
Proceeds from franchise termination		(1.9	)			—			(1.9	)			—
Asset impairments		14.1				117.2			149.5				252.6
Hail damage		—				—			7.1				7.1
Hurricane Milton losses		6.4				—			6.4				—
Professional fees associated with acquisition		—				2.4			—				2.4
Fixed assets write-off		—				1.1			—				1.1
Total non-core items		18.6				120.7			152.4				254.5
Adjusted EBITDA	$	253.8			$	254.6		$	982.0			$	982.8
Impact of dealership acquisitions and divestitures								$	(1.0	)		$	17.2
Transaction adjusted EBITDA								$	981.0			$	1,000.0
Transaction adjusted net leverage ratio									2.85				2.87

	Three Months Ended December 31, 2024
	GAAP				Proceeds from franchise termination				Asset impairments			Hurricane Milton losses					Income tax effect				Non-GAAP adjusted
	(In millions, except per share data)
Selling, general and administrative (SG&A)	$	476.9			$	1.9			$	—		$	(6.4	)			$	—			$	472.4
Income from operations	$	239.7			$	(1.9	)		$	14.1		$	6.4				$	—			$	258.3
Net income	$	128.8			$	(1.9	)		$	14.1		$	6.4				$	(4.3	)		$	143.1
Weighted average common share outstanding - diluted		19.7																				19.7
Diluted EPS	$	6.54			$	(0.07	)		$	0.55		$	0.25				$	—			$	7.26
SG&A as a % of gross profit		63.6	%																			63.0	%
Income from operations as a % of revenue		5.3	%																			5.7	%
SG&A (Same Store)	$	408.6			$	—			$	—		$	(6.4	)	—	%	$	—			$	402.2
SG&A as a % of gross profit (Same Store)		63.0	%																			62.0	%

	Three Months Ended December 31, 2023
	GAAP				Professional fees associated with acquisitions				Fixed asset write-off				Asset impairments			Income tax effect				Non-GAAP adjusted
	(In millions, except per share data)
Selling, general and administrative (SG&A)	$	414.0			$	(2.4	)		$	(1.1	)		$	—		$	—			$	410.5
Income from operations	$	124.6			$	2.4			$	1.1			$	117.2		$	—			$	245.3
Net income	$	55.5			$	2.4			$	1.1			$	117.2		$	(29.9	)		$	146.3
Weighted average common share outstanding - diluted		20.5																			20.5
Diluted EPS	$	2.70			$	0.09			$	0.04			$	4.29		$	—			$	7.12
SG&A as a % of gross profit		61.5	%																		61.0	%
Income from operations as a % of revenue		3.3	%																		6.4	%
SG&A (Same Store)	$	389.1			$	—			$	(1.1	)		$	—		$	—			$	388.0
SG&A as a % of gross profit (Same Store)		61.1	%																		60.9	%

	Twelve Months Ended December 31, 2024
	GAAP				Gain on dealership divestitures, net				Proceeds from franchise termination				Asset impairments			Hurricane Milton losses				Hail damage				Income tax effect				Non-GAAP adjusted
	(In millions, except per share data)
Selling, general and administrative (SG&A)	$	1,888.5			$	—			$	1.9			$	—		$	(6.4	)		$	(7.1	)		$	—			$	1,877.0
Income from operations	$	835.6			$	—			$	(1.9	)		$	149.5		$	6.4			$	7.1			$	—			$	996.7
Net income	$	430.3			$	(8.6	)		$	(1.9	)		$	149.5		$	6.4			$	7.1			$	(37.6	)		$	545.1
Weighted average common share outstanding - diluted		20.0																											20.0
Diluted EPS	$	21.50			$	(0.32	)		$	(0.07	)		$	5.62		$	0.24			$	0.27			$	—			$	27.24
SG&A as a % of gross profit		64.0	%																										63.7	%
Income from operations as a % of revenue		4.9	%																										5.8	%
SG&A (Same Store)	$	1,590.4			$	—			$	—			$	—		$	(6.4	)		$	(7.1	)		$	—			$	1,577.0
SG&A as a % of gross profit (Same Store)		63.5	%																										63.0	%

	Twelve Months Ended December 31, 2023
	GAAP				Gain on dealership divestiture, net				Asset impairments			Legal settlement				Fixed assets write-off				Hail damage				Gain on sale of real estate				Professional fees associated with acquisition				Income tax effect				Non GAAP adjusted
	(In millions, except per share data)
Selling, general and administrative (SG&A)	$	1,617.4			$	—			$	—		$	1.9			$	(1.1	)		$	(4.3	)		$	3.6			$	(4.1	)		$	—			$	1,613.2
Income from operations	$	953.5			$	—			$	117.2		$	(1.9	)		$	1.1			$	4.3			$	(3.6	)		$	4.1			$	—			$	1,074.9
Net income	$	602.5			$	(13.5	)		$	117.2		$	(1.9	)		$	1.1			$	4.3			$	(3.6	)		$	4.1			$	(26.7	)		$	683.6
Weighted average common share outstanding - diluted		21.0																																			21.0
Diluted EPS	$	28.74			$	(0.48	)		$	4.20		$	(0.07	)		$	0.04			$	0.16			$	(0.13	)		$	0.15			$	—			$	32.60
SG&A as a % of gross profit		58.7	%																																		58.5	%
Income from operations as a % of revenue		6.4	%																																		7.3	%
SG&A (Same Store)	$	1,566.7			$	—			$	—		$	1.9			$	(1.1	)		$	(4.3	)		$	3.6			$	—			$	—			$	1,566.7
SG&A as a % of gross profit (Same Store)		58.3	%																																		58.3	%

	For the Year Ended December 31,
		2024				2023
	(In millions)
Adjusted cash flow from operations:
Cash provided by operating activities	$	671.2			$	313.0
Change in Floor Plan Notes Payable—Non-Trade, net		(5.2	)			1,018.9
Change in Floor Plan Notes Payable—Non-Trade associated with floor plan offset, used vehicle borrowing base changes adjusted for acquisition and divestitures		71.9				(571.3	)
Change in Floor Plan Notes Payable—Trade associated with floor plan offset, adjusted for acquisition and divestitures		(49.5	)			(55.3	)
Adjusted cash flow provided by operating activities	$	688.4			$	705.4

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130761070/en/

Investors & Reporters May Contact:

Joe Sorice

Sr. Manager, Investor Relations

(770) 418-8211

ir@asburyauto.com

Source: Asbury Automotive Group, Inc.

FAQ

What was Asbury Automotive Group's (ABG) revenue in Q4 2024?

Asbury Automotive Group reported record quarterly revenue of $4.5 billion in Q4 2024, representing an 18% increase from the previous year.

How much did ABG's Parts & Service segment grow in Q4 2024?

ABG's Parts & Service segment achieved record gross profit of $340 million, showing 19% growth overall and 11% same-store growth.

What was ABG's share repurchase activity in 2024?

In 2024, ABG repurchased approximately 830,000 shares for $183 million, with $276 million remaining in the share repurchase authorization.

How did ABG's full-year 2024 performance compare to 2023?

ABG's full-year 2024 net income decreased 25% to $430 million ($21.50 per share) compared to $603 million ($28.74 per share) in 2023.

What was ABG's liquidity position at the end of 2024?

As of December 31, 2024, ABG had total liquidity of $828 million, including $156 million in cash and floorplan offset accounts and $672 million in available credit.