Asbury Automotive Group Reports Second Quarter Results
Asbury Automotive Group (NYSE: ABG) reported record second quarter revenue of $4.2 billion, a 13% increase year-over-year. However, net income decreased 86% to $28 million ($1.39 per diluted share) compared to $196 million in Q2 2023. Adjusted net income fell 31% to $129 million ($6.40 per diluted share). The company's results were significantly impacted by a CDK Global cyber incident, estimated to have negatively affected earnings by $0.95 to $1.15 per diluted share. Despite challenges, Asbury achieved record parts & service revenue of $581 million and gross profit of $340 million. The company also repurchased approximately 193,000 shares for $43 million in Q2 and 592,000 shares for $130 million year-to-date through August 1, 2024.
Asbury Automotive Group (NYSE: ABG) ha riportato un fatturato record nel secondo trimestre di 4,2 miliardi di dollari, con un incremento del 13% rispetto all'anno precedente. Tuttavia, l'utile netto è diminuito dell'86%, scendendo a 28 milioni di dollari (1,39 dollari per azione diluita) rispetto ai 196 milioni di dollari del Q2 2023. L'utile netto rettificato è diminuito del 31%, attestandosi a 129 milioni di dollari (6,40 dollari per azione diluita). I risultati dell'azienda sono stati significativamente influenzati da un incidente informatico di CDK Global, che ha comportato una stima di impatto negativo sugli utili tra 0,95 e 1,15 dollari per azione diluita. Nonostante le difficoltà, Asbury ha raggiunto un fatturato record per parti e servizi di 581 milioni di dollari e un utile lordo di 340 milioni di dollari. L'azienda ha inoltre riacquistato circa 193.000 azioni per 43 milioni di dollari nel Q2 e 592.000 azioni per 130 milioni di dollari dall'inizio dell'anno fino al 1° agosto 2024.
Asbury Automotive Group (NYSE: ABG) reportó un ingreso récord en el segundo trimestre de 4.2 mil millones de dólares, lo que representa un aumento del 13% en comparación con el año anterior. Sin embargo, la utilidad neta disminuyó un 86%, quedando en 28 millones de dólares (1.39 dólares por acción diluida) en comparación con 196 millones de dólares en el Q2 2023. La utilidad neta ajustada cayó un 31% a 129 millones de dólares (6.40 dólares por acción diluida). Los resultados de la compañía se vieron significativamente afectados por un incidente cibernético de CDK Global, que se estima impactó negativamente las ganancias en entre 0.95 y 1.15 dólares por acción diluida. A pesar de los desafíos, Asbury logró un ingreso récord en piezas y servicios de 581 millones de dólares y un beneficio bruto de 340 millones de dólares. La compañía también recompró aproximadamente 193,000 acciones por 43 millones de dólares en el Q2 y 592,000 acciones por 130 millones de dólares en lo que va del año hasta el 1 de agosto de 2024.
애스버리 오토모티브 그룹(뉴욕증권거래소: ABG)은 2분기 매출이 42억 달러로 역대 최고치를 기록했습니다, 전년 대비 13% 증가했습니다. 그러나 순이익은 86% 감소하여 2800만 달러(희석 주당 1.39 달러)로 줄어들었고, 2023년 2분기에는 1억 9600만 달러였습니다. 조정된 순이익은 31% 하락하여 1억 2900만 달러(희석 주당 6.40 달러)에 달했습니다. 회사의 성과는 CDK 글로벌 사이버 사건부품 및 서비스 매출이 5억 8100만 달러로 역대 최고치를 기록했습니다 및 총 이익이 3억 4000만 달러에 달했습니다. 회사는 또한 2분기에 약 193,000주를 4300만 달러에 재매입했습니다 및 2024년 8월 1일까지 연초부터 592,000주를 1억 3000만 달러에 재매입했습니다.
Asbury Automotive Group (NYSE: ABG) a annoncé un chiffre d'affaires record de 4,2 milliards de dollars au deuxième trimestre, avec une augmentation de 13 % par rapport à l'année précédente. Cependant, le bénéfice net a chuté de 86 % pour atteindre 28 millions de dollars (1,39 $ par action diluée), contre 196 millions de dollars au 2T 2023. Le bénéfice net ajusté a baissé de 31 % pour s'établir à 129 millions de dollars (6,40 $ par action diluée). Les résultats de l'entreprise ont été fortement impactés par un incident cybernétique de CDK Global, qui a eu un effet négatif estimé sur les bénéfices de 0,95 à 1,15 $ par action diluée. Malgré ces défis, Asbury a atteint un chiffre d'affaires record pour les pièces et services de 581 millions de dollars et un bénéfice brut de 340 millions de dollars. L'entreprise a également racheté environ 193 000 actions pour 43 millions de dollars au 2T et 592 000 actions pour 130 millions de dollars depuis le début de l'année jusqu'au 1er août 2024.
Asbury Automotive Group (NYSE: ABG) berichtete von einem Rekordumsatz im zweiten Quartal von 4,2 Milliarden Dollar, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht. Allerdings sank der Nettogewinn um 86% auf 28 Millionen Dollar (1,39 Dollar pro verwässerter Aktie) im Vergleich zu 196 Millionen Dollar im Q2 2023. Der angepasste Nettogewinn fiel um 31% auf 129 Millionen Dollar (6,40 Dollar pro verwässerter Aktie). Die Ergebnisse des Unternehmens wurden erheblich durch einen Cybervorfall bei CDK Global beeinträchtigt, der voraussichtlich die Gewinne um 0,95 bis 1,15 Dollar pro verwässerter Aktie negativ beeinflusste. Trotz der Herausforderungen erzielte Asbury einen Rekordumsatz im Bereich Teile und Service von 581 Millionen Dollar und einen Bruttogewinn von 340 Millionen Dollar. Das Unternehmen hat auch ungefähr 193.000 Aktien für 43 Millionen Dollar im Q2 und 592.000 Aktien für 130 Millionen Dollar seit Jahresbeginn bis zum 1. August 2024 zurückgekauft.
- Record second quarter revenue of $4.2 billion, up 13% year-over-year
- Record parts & service revenue of $581 million and gross profit of $340 million
- New vehicle unit volume increased 12% and used vehicle retail unit volume increased 22%
- Clicklane sales reached an all-time record of 15,201 cars, up 33% over last year
- Share repurchases of 193,000 shares for $43 million in Q2 and 592,000 shares for $130 million year-to-date
- Net income decreased 86% to $28 million ($1.39 per diluted share)
- Adjusted net income fell 31% to $129 million ($6.40 per diluted share)
- CDK Global cyber incident negatively impacted earnings by $0.95 to $1.15 per diluted share
- Gross margin decreased 185 bps to 17.2%
- New vehicle gross profit decreased 16% and used vehicle retail gross profit decreased 14%
- F&I per vehicle retailed (PVR) decreased 9% to $2,151
Insights
Asbury Automotive Group's Q2 2024 results present a mixed picture, with some notable highlights and challenges. The company reported record second quarter revenue of
The adjusted net income, which excludes certain one-time items, decreased by
A major factor impacting the quarter's performance was the CDK Global cyber incident, which disrupted various operations. The company estimates this negatively affected earnings per share by
The company's liquidity position remains strong, with
While the cyber incident presents a short-term setback, Asbury's ability to adapt and grow in challenging conditions, particularly through its digital initiatives, suggests potential for recovery and future growth.
Asbury's Q2 results offer intriguing insights into the current state of the automotive retail sector. The
The
Asbury's success with its Clicklane platform, achieving record sales amid operational disruptions, highlights the growing significance of digital retailing in the automotive sector. This digital pivot may be a key differentiator for dealership groups moving forward, especially in attracting younger, tech-savvy consumers.
The CDK Global cyber incident serves as a stark reminder of the vulnerabilities in the increasingly digitized automotive retail landscape. As dealerships become more reliant on integrated software solutions, cybersecurity will likely become a critical focus area for the industry.
Overall, Asbury's results reflect the complex dynamics at play in the automotive retail sector, balancing traditional sales models with digital innovation, while navigating external challenges and changing consumer preferences.
The CDK Global cyber incident that impacted Asbury Automotive Group's Q2 results is a stark reminder of the critical importance of robust cybersecurity measures in the automotive retail sector. This event, which affected sales, service, inventory, CRM and accounting functions, demonstrates the far-reaching consequences of cyber attacks on interconnected business systems.
The estimated impact of
Asbury's ability to partially mitigate the disruption through its Clicklane platform showcases the value of having diversified, independent digital systems. This resilience in the face of a major cyber event could prompt other automotive retailers to reevaluate their digital infrastructure and consider more decentralized approaches.
Moving forward, the industry may see increased investment in cybersecurity measures, particularly in securing third-party vendor relationships. The incident may also accelerate the adoption of advanced threat detection and response capabilities, as well as comprehensive business continuity plans designed specifically for cyber incidents.
As automotive retail continues to digitize, balancing the benefits of integrated systems with the need for robust security and operational resilience will be crucial. This incident serves as a wake-up call for the entire industry to prioritize cybersecurity as a fundamental aspect of business strategy and risk management.
-
Record second quarter revenue of
$4.2 billion
-
Record for second quarter parts & service revenue of
$581 million $340 million
-
Repurchased approximately 193,000 shares for
$43 million $130 million
“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
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,
Adjusted net income for second quarter 2023 excludes, net of tax, gain on divestiture of
Second Quarter 2024 Operational Summary
Total Company vs. 2nd Quarter 2023:
-
Revenue of
$4.2 billion 13% -
Gross profit of
$731 million 2% -
Gross margin decreased 185 bps to
17.2% -
New vehicle unit volume increase of
12% ; new vehicle revenue increase of11% ; new vehicle gross profit decrease of16% -
Used vehicle retail unit volume increase of
22% ; used vehicle retail revenue increase of15% ; used vehicle retail gross profit decrease of14% -
Finance and insurance (F&I) per vehicle retailed (PVR) of
$2,151 9% -
Parts and service revenue increase of
10% ; gross profit increase of16% -
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 5% -
Gross profit of
$620 million 12% -
Gross margin decreased 144 bps to
17.6% -
New vehicle unit volume decrease of
6% ; new vehicle revenue decrease of6% ; new vehicle gross profit decrease of29% -
Used vehicle retail unit volume decrease of
2% ; used vehicle retail revenue decrease of7% ; used vehicle retail gross profit decrease of27% -
F&I PVR of
$2,124 11% -
Parts and service revenue decrease of
2% ; gross profit increase of4% -
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
Liquidity and Leverage
As of June 30, 2024, the Company had cash and floorplan offset accounts of
Share Repurchases
The Company repurchased approximately 193,000 shares for
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
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
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
|
|
%
|
|
For the Six Months
|
|
%
|
||||||||||||||
|
|
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 |
|
June 30,
|
|
December 31,
|
|
June 30,
|
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
|
||||
|
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
|
||||
|
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, |
|
%
|
|
For the Six Months Ended June 30, |
|
%
|
||||||||||||||
|
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
|
|
%
|
|
For the Six Months
|
|
%
|
||||||||||||||
|
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 |
|
|
|
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 |
|
|
|
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
Source: Asbury Automotive Group, Inc.
FAQ
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