- Revenue of $4.2 billion, growth of 16%
- Parts & Service gross profit growth of 16%
- Same store SG&A as a percentage of gross profit of 64.5%;
same store adjusted SG&A as a percentage of gross profit, a
non-GAAP measure, of 63.8%
- Sequential improvement in SG&A as a percentage of gross
profit of 25 bps and adjusted SG&A as a percentage of gross
profit, a non-GAAP measure, of 39 bps
- EPS of $6.37 per diluted share; adjusted EPS, a non-GAAP
measure, of $6.35 per diluted share
- Estimated EPS impact of $0.39 - $0.43 due to stop sale orders
for certain vehicle models (estimated lost sales of nearly 1,200
new units) and lost business from Hurricane Helene
- Repurchased approximately 394,000 shares for $89 million
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one
of the largest automotive retail and service companies in the U.S.,
reported third quarter 2024 net income of $126 million ($6.37 per
diluted share), a decrease of 25% from $169 million ($8.19 per
diluted share) in third quarter 2023. The Company reported third
quarter 2024 adjusted net income, a non-GAAP measure, of $126
million ($6.35 per diluted share), a decrease of 25% from $168
million ($8.12 per diluted share) in third quarter 2023.
“Against the backdrop of normalizing inventory levels, certain
brand challenges and a hurricane, I am proud of the way our team
members rose to the challenge delivering sequential improvements in
many of our key operating metrics,” said David Hult, Asbury’s
President and Chief Executive Officer. “We were also pleased with
the progress in our Parts & Service operations, and in
particular the strength we saw in Customer Pay - the largest and
most profitable portion of this business. Our SG&A costs
declined sequentially, and we executed against our strategic
capital allocation framework, repurchasing nearly 400,000 shares in
the quarter.”
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 third quarter 2024 excludes, net of tax,
net gain on divestitures of $3 million ($0.14 per diluted share),
and losses related to hail damage of $2 million ($0.11 per diluted
share).
Adjusted net income for third quarter 2023 excludes, net of tax,
a $3 million ($0.13 per diluted share) gain on sale of real estate
and $1 million ($0.06 per diluted share) of professional fees
related to the acquisition of the Jim Koons Automotive
Companies.
Third Quarter 2024 Operational
Summary
Total Company vs. 3rd Quarter 2023:
- Revenue of $4.2 billion, increase of 16%
- Gross profit of $718 million, increase of 7%
- Gross margin decreased 142 bps to 16.9%
- New vehicle unit volume increase of 16%; new vehicle revenue
increase of 16%; new vehicle gross profit decrease of 11%
- Used vehicle retail unit volume increase of 16%; used vehicle
retail revenue increase of 13%; used vehicle retail gross profit
decrease of 6%
- Finance and insurance (F&I) per vehicle retailed (PVR) of
$2,141, decrease of 3%
- Parts and service revenue increase of 13%; gross profit
increase of 16%
- SG&A as a percentage of gross profit of 65.0%
- Adjusted SG&A as a percentage of gross profit of 64.4%
- Operating margin of 5.5%
- Adjusted operating margin of 5.6%
Same Store vs. 3rd Quarter 2023:
- Revenue of $3.5 billion, decrease of 2%
- Gross profit of $612 million, decrease of 8%
- Gross margin decreased 111 bps to 17.3%
- New vehicle unit volume decrease of 1%; new vehicle revenue
flat to prior year period; new vehicle gross profit decrease of
24%
- Used vehicle retail unit volume decrease of 6%; used vehicle
retail revenue decrease of 8%; used vehicle retail gross profit
decrease of 21%
- F&I PVR of $2,111, decrease of 5%
- Parts and service revenue increase of 1%; gross profit increase
of 4%
- SG&A as a percentage of gross profit of 64.5%
- Adjusted SG&A as a percentage of gross profit of 63.8%
- Operating margin of 5.7%
- Adjusted operating margin of 5.8%
Liquidity and Leverage
As of September 30, 2024, the Company had cash and floorplan
offset accounts of $202 million (which excludes $56 million of cash
at Total Care Auto, Powered by Landcar) and availability under the
used vehicle floorplan line and revolver of $566 million for a
total of $768 million in liquidity. The Company’s transaction
adjusted net leverage ratio, which is calculated as set forth in
our credit facility, was 2.9x at quarter end.
Share Repurchases
The Company repurchased approximately 394,000 shares for $89
million during the third quarter 2024. Year-to-date through October
28, 2024, the Company has repurchased approximately 830,000 shares
for $183 million. As of October 28, 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 third quarter results will
be provided during the earnings conference call on Tuesday, October
29, 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:
13749524
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 September 30, 2024, Asbury operated 153 new vehicle dealerships,
consisting of 202 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.
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 Hurricane Helene and Hurricane Milton, 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, and Asbury's ability to execute
its strategic and operational strategies and initiatives, including
its five-year strategic plan, Asbury's ability to leverage gains
from its dealership portfolio, Asbury's ability to capitalize on
opportunities to repurchase its debt and equity securities or
purchase properties that it currently leases, and Asbury's ability
to stay within its targeted range for capital expenditures. There
can be no guarantees that Asbury's plans for future operations will
be successfully implemented or that they will prove to be
commercially successful.
These and other risk factors that could cause actual results to
differ materially from those expressed or implied in our
forward-looking statements are and will be discussed in Asbury's
filings with the U.S. Securities and Exchange Commission from time
to time, including its most recent annual report on Form 10-K and
any subsequently filed quarterly reports on Form 10-Q. These
forward-looking statements and such risks, uncertainties and other
factors speak only as of the date of this press release. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Disclosure and
Reconciliation, Same Store Data and Other Data
In addition to evaluating the financial condition and results of
our operations in accordance with GAAP, from time to time
management evaluates and analyzes results and any impact on the
Company of strategic decisions and actions relating to, among other
things, cost reduction, growth, and profitability improvement
initiatives, and other events outside of normal, or "core,"
business and operations, by considering certain alternative
financial measures not prepared in accordance with GAAP. These
measures include "Adjusted income from operations," "Adjusted net
income," "Adjusted operating margins," "Adjusted EBITDA," "Adjusted
diluted earnings per share ("EPS")," "Adjusted SG&A," "Adjusted
operating cash flow," "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 that 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
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
2024
2023
2024
2023
REVENUE:
New vehicle
$
2,163.5
$
1,861.9
16
%
$
6,392.6
$
5,572.2
15
%
Used vehicle:
Retail
1,148.5
1,016.8
13
%
3,507.0
3,051.8
15
%
Wholesale
146.2
94.9
54
%
452.6
293.8
54
%
Total used vehicle
1,294.7
1,111.7
16
%
3,959.6
3,345.6
18
%
Parts and service
593.1
526.5
13
%
1,764.3
1,568.2
13
%
Finance and insurance, net
185.4
166.1
12
%
567.5
505.0
12
%
TOTAL REVENUE
4,236.7
3,666.2
16
%
12,684.1
10,991.0
15
%
COST OF SALES:
New vehicle
2,013.1
1,693.6
19
%
5,924.4
5,040.1
18
%
Used vehicle:
Retail
1,092.4
957.0
14
%
3,329.6
2,855.5
17
%
Wholesale
142.9
92.6
54
%
437.7
280.1
56
%
Total used vehicle
1,235.3
1,049.6
18
%
3,767.3
3,135.6
20
%
Parts and service
256.0
235.3
9
%
753.2
702.9
7
%
Finance and insurance
14.2
14.1
1
%
40.5
29.6
37
%
TOTAL COST OF SALES
3,518.6
2,992.7
18
%
10,485.3
8,908.2
18
%
GROSS PROFIT
718.0
673.5
7
%
2,198.8
2,082.8
6
%
OPERATING EXPENSES:
Selling, general, and administrative
466.5
391.7
19
%
1,411.6
1,203.3
17
%
Depreciation and amortization
18.9
17.0
11
%
55.8
50.5
10
%
Asset impairments
—
—
—
%
135.4
—
—
%
INCOME FROM OPERATIONS
232.7
264.7
(12
)%
596.0
829.0
(28
)%
OTHER EXPENSES:
Floor plan interest expense
22.3
—
—
%
66.1
1.5
NM
Other interest expense, net
45.7
38.7
18
%
134.9
115.3
17
%
Gain on dealership divestitures
(5.0
)
—
—
%
(8.6
)
(13.5
)
(36
)%
Total other expenses, net
63.0
38.7
63
%
192.4
103.3
86
%
INCOME BEFORE INCOME TAXES
169.7
226.0
(25
)%
403.6
725.7
(44
)%
Income tax expense
43.4
56.8
(24
)%
102.1
178.7
(43
)%
NET INCOME
$
126.3
$
169.2
(25
)%
$
301.5
$
547.0
(45
)%
EARNINGS PER SHARE:
Basic—
Net income
$
6.40
$
8.22
(22
)%
$
15.03
$
26.02
(42
)%
Diluted—
Net income
$
6.37
$
8.19
(22
)%
$
14.99
$
25.91
(42
)%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic
19.7
20.6
20.1
21.0
Restricted stock
0.1
0.1
—
0.1
Performance share units
—
—
0.1
—
Diluted
19.8
20.7
20.1
21.1
______________________________
NM—Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures-Consolidated (In
millions)
(Unaudited)
September 30, 2024
December 31, 2023
Increase
(Decrease)
% Change
SELECTED BALANCE SHEET DATA
Cash and cash equivalents
$
60.3
$
45.7
$
14.6
32
%
Inventory, net (a)
2,030.8
1,768.3
262.5
15
%
Total current assets
3,104.5
3,057.1
47.4
2
%
Floor plan notes payable
1,486.0
1,785.7
(299.8
)
(17
)%
Total current liabilities
2,594.2
2,875.7
(281.5
)
(10
)%
CAPITALIZATION:
Long-term debt (including current
portion)
$
3,382.8
$
3,206.2
$
176.7
6
%
Shareholders' equity
3,362.4
3,244.1
118.3
4
%
Total
$
6,745.2
$
6,450.3
$
294.9
5
%
_____________________________
(a) Excluding $47.9 million and $84.5
million of inventory classified as assets held for sale as of
September 30, 2024 and December 31, 2023, respectively.
September 30, 2024
December 31, 2023
September 30, 2023
Days Supply
New vehicle inventory
63
43
36
Used vehicle inventory
38
32
29
_____________________________
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
September 30,
2024
2023
Luxury
Lexus
10
%
10
%
Mercedes-Benz
7
%
8
%
BMW
2
%
3
%
Land Rover
2
%
2
%
Porsche
2
%
2
%
Acura
1
%
2
%
Other luxury
4
%
5
%
Total luxury
30
%
31
%
Imports
Toyota
19
%
18
%
Honda
9
%
10
%
Hyundai
5
%
4
%
Nissan
2
%
3
%
Subaru
2
%
2
%
Kia
2
%
2
%
Other imports
2
%
1
%
Total imports
41
%
41
%
Domestic
Ford
13
%
10
%
Chrysler, Dodge, Jeep, Ram
8
%
12
%
Chevrolet, Buick, GMC
8
%
6
%
Total domestic
29
%
28
%
Total New Vehicle Revenue
100
%
100
%
For the Three Months Ended
September 30,
2024
2023
Revenue mix
New vehicle
51.1
%
50.8
%
Used vehicle retail
27.1
%
27.7
%
Used vehicle wholesale
3.5
%
2.6
%
Parts and service
14.0
%
14.4
%
Finance and insurance, net
4.4
%
4.5
%
Total revenue
100.0
%
100.0
%
Gross profit mix
New vehicle
20.9
%
25.0
%
Used vehicle retail
7.8
%
8.9
%
Used vehicle wholesale
0.5
%
0.3
%
Parts and service
46.9
%
43.2
%
Finance and insurance, net
23.8
%
22.6
%
Total gross profit
100.0
%
100.0
%
ASBURY AUTOMOTIVE GROUP, INC.
OPERATING HIGHLIGHTS-CONSOLIDATED (In
millions)
(Unaudited)
For the Three Months Ended
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
2024
2023
2024
2023
Revenue
New vehicle
$
2,163.5
$
1,861.9
16
%
$
6,392.6
$
5,572.2
15
%
Used vehicle:
Retail
1,148.5
1,016.8
13
%
3,507.0
3,051.8
15
%
Wholesale
146.2
94.9
54
%
452.6
293.8
54
%
Total used vehicle
1,294.7
1,111.7
16
%
3,959.6
3,345.6
18
%
Parts and service
593.1
526.5
13
%
1,764.3
1,568.2
13
%
Finance and insurance, net
185.4
166.1
12
%
567.5
505.0
12
%
Total revenue
$
4,236.7
$
3,666.2
16
%
$
12,684.1
$
10,991.0
15
%
Gross
profit
New vehicle
$
150.4
$
168.3
(11
)%
$
468.3
$
532.1
(12
)%
Used vehicle:
Retail
56.1
59.8
(6
)%
177.4
196.2
(10
)%
Wholesale
3.3
2.3
45
%
14.9
13.7
9
%
Total used vehicle
59.4
62.1
(4
)%
192.3
210.0
(8
)%
Parts and service
337.1
291.1
16
%
1,011.1
865.3
17
%
Finance and insurance, net
171.2
152.0
13
%
527.0
475.4
11
%
Total gross profit
$
718.0
$
673.5
7
%
$
2,198.8
$
2,082.8
6
%
Unit
sales
New vehicle:
Luxury
8,951
8,150
10
%
26,248
25,504
3
%
Import
22,500
19,659
14
%
66,650
57,015
17
%
Domestic
11,156
9,037
23
%
33,065
27,093
22
%
Total new vehicle
42,607
36,846
16
%
125,963
109,612
15
%
Used vehicle retail
37,347
32,117
16
%
115,370
96,729
19
%
Used to new ratio
87.7
%
87.2
%
91.6
%
88.2
%
Average selling
price
New vehicle
$
50,778
$
50,531
—
%
$
50,750
$
50,836
—
%
Used vehicle retail
$
30,751
$
31,660
(3
)%
$
30,398
$
31,550
(4
)%
Average gross
profit per unit
New vehicle:
Luxury
$
6,906
$
7,553
(9
)%
$
6,982
$
7,975
(12
)%
Import
2,508
3,458
(27
)%
2,638
3,584
(26
)%
Domestic
2,881
4,286
(33
)%
3,302
4,592
(28
)%
Total new vehicle
3,529
4,567
(23
)%
3,718
4,855
(23
)%
Used vehicle retail
1,501
1,861
(19
)%
1,538
2,029
(24
)%
Finance and insurance
2,141
2,204
(3
)%
2,184
2,304
(5
)%
Front end yield (1)
4,723
5,511
(14
)%
4,859
5,834
(17
)%
Gross
margin
Total new vehicle
7.0
%
9.0
%
(209) bps
7.3
%
9.5
%
(222) bps
Used vehicle retail
4.9
%
5.9
%
(100) bps
5.1
%
6.4
%
(137) bps
Parts and service
56.8
%
55.3
%
154 bps
57.3
%
55.2
%
213 bps
Total gross profit margin
16.9
%
18.4
%
(142) bps
17.3
%
19.0
%
(162) bps
Operating
expenses
Selling, general, and administrative
$
466.5
$
391.7
19
%
$
1,411.6
$
1,203.3
17
%
Adjusted selling, general, and
administrative
$
462.5
$
393.5
18
%
$
1,404.6
$
1,202.7
17
%
SG&A as a % of gross profit
65.0
%
58.2
%
680 bps
64.2
%
57.8
%
643 bps
Adjusted SG&A as a % of gross
profit
64.4
%
58.4
%
598 bps
63.9
%
57.7
%
614 bps
Income from operations as a % of
revenue
5.5
%
7.2
%
(173) bps
4.7
%
7.5
%
(284) bps
Income from operations as a % of gross
profit
32.4
%
39.3
%
(690) bps
27.1
%
39.8
%
(1,270) bps
Adjusted income from operations as a % of
revenue
5.6
%
7.2
%
(159) bps
5.8
%
7.5
%
(173) bps
Adjusted income from operations as a % of
gross profit
33.0
%
39.0
%
(608) bps
33.6
%
39.8
%
(625) 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
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
2024
2023
2024
2023
Revenue
New vehicle
$
1,834.1
$
1,841.7
—
%
$
5,368.7
$
5,501.4
(2
)%
Used vehicle:
Retail
921.0
1,005.6
(8
)%
2,795.3
3,000.9
(7
)%
Wholesale
104.4
92.4
13
%
333.8
283.9
18
%
Total used vehicle
1,025.4
1,098.1
(7
)%
3,129.0
3,284.8
(5
)%
Parts and service
524.7
519.1
1
%
1,547.5
1,542.5
—
%
Finance and insurance, net
152.7
165.0
(7
)%
463.8
500.4
(7
)%
Total revenue
$
3,536.9
$
3,623.9
(2
)%
$
10,509.0
$
10,829.2
(3
)%
Gross
profit
New vehicle
$
126.2
$
167.0
(24
)%
$
391.5
$
526.8
(26
)%
Used vehicle:
Retail
46.4
59.1
(21
)%
145.7
193.0
(24
)%
Wholesale
2.3
2.4
(3
)%
9.6
13.9
(31
)%
Total used vehicle
48.8
61.5
(21
)%
155.4
207.0
(25
)%
Parts and service
298.1
287.5
4
%
889.0
852.2
4
%
Finance and insurance, net
138.5
150.9
(8
)%
423.3
470.9
(10
)%
Total gross profit
$
611.5
$
666.8
(8
)%
$
1,859.1
$
2,056.8
(10
)%
Unit
sales
New vehicle:
Luxury
8,730
8,184
7
%
25,423
25,405
—
%
Import
19,421
19,198
1
%
56,103
55,661
1
%
Domestic
7,780
8,929
(13
)%
23,559
26,806
(12
)%
Total new vehicle
35,931
36,311
(1
)%
105,085
107,872
(3
)%
Used vehicle retail
29,668
31,665
(6
)%
91,167
94,604
(4
)%
Used to new ratio
82.6
%
87.2
%
86.8
%
87.7
%
Average selling
price
New vehicle
$
51,044
$
50,719
1
%
$
51,089
$
50,999
—
%
Used vehicle retail
$
31,044
$
31,759
(2
)%
$
30,661
$
31,720
(3
)%
Average gross
profit per unit
New vehicle:
Luxury
$
7,003
$
7,529
(7
)%
$
7,066
$
7,966
(11
)%
Import
2,305
3,486
(34
)%
2,419
3,609
(33
)%
Domestic
2,606
4,306
(39
)%
3,231
4,608
(30
)%
Total new vehicle
3,512
4,599
(24
)%
3,725
4,883
(24
)%
Used vehicle retail
1,566
1,866
(16
)%
1,599
2,040
(22
)%
Finance and insurance
2,111
2,219
(5
)%
2,157
2,325
(7
)%
Front end yield (1)
4,743
5,545
(14
)%
4,894
5,880
(17
)%
Gross
margin
Total new vehicle
6.9
%
9.1
%
(219) bps
7.3
%
9.6
%
(228) bps
Used vehicle retail
5.0
%
5.9
%
(83) bps
5.2
%
6.4
%
(122) bps
Parts and service
56.8
%
55.4
%
144 bps
57.4
%
55.2
%
220 bps
Total gross profit margin
17.3
%
18.4
%
(111) bps
17.7
%
19.0
%
(130) bps
Operating
expenses
Selling, general, and administrative
$
394.3
$
386.2
2
%
$
1,185.5
$
1,181.8
—
%
Adjusted selling, general, and
administrative
$
390.3
$
389.7
—
%
$
1,178.4
$
1,182.9
—
%
SG&A as a % of gross profit
64.5
%
57.9
%
657 bps
63.8
%
57.5
%
631 bps
Adjusted SG&A as a % of gross
profit
63.8
%
58.4
%
538 bps
63.4
%
57.5
%
587 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 September
30, 2024
Three Months Ended September
30, 2023
Dealerships
TCA After Eliminations
Total Company
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
2,163.5
$
—
$
2,163.5
$
1,861.9
$
—
$
1,861.9
Used
1,294.7
—
1,294.7
1,111.7
—
1,111.7
Parts and service
603.3
(10.2
)
593.1
535.4
(9.0
)
526.5
Finance and insurance, net
149.0
36.4
185.4
129.9
36.2
166.1
Total revenue
$
4,210.5
$
26.2
$
4,236.7
$
3,638.9
$
27.3
$
3,666.2
Cost of sales
New
$
2,013.1
$
—
$
2,013.1
$
1,693.6
$
—
$
1,693.6
Used
1,235.3
—
1,235.3
1,049.6
—
1,049.6
Parts and service
266.2
(10.2
)
256.0
240.2
(4.9
)
235.3
Finance and insurance
—
14.2
14.2
—
14.1
14.1
Total cost of sales
$
3,514.6
$
4.0
$
3,518.6
$
2,983.4
$
9.2
$
2,992.7
Gross profit
New
$
150.4
$
—
$
150.4
$
168.3
$
—
$
168.3
Used
59.4
—
59.4
62.1
—
62.1
Parts and service
337.1
—
337.1
295.2
(4.1
)
291.1
Finance and insurance, net
149.0
22.2
171.2
129.9
22.1
152.0
Total gross profit
$
695.9
$
22.2
$
718.0
$
655.5
$
18.0
$
673.5
Selling, general and
administrative
$
469.2
$
(2.7
)
$
466.5
$
396.4
$
(4.7
)
$
391.7
Income from operations
$
214.7
$
17.9
$
232.7
$
244.9
$
19.8
$
264.7
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Dealerships
TCA After Eliminations
Total Company
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
6,392.6
$
—
$
6,392.6
$
5,572.2
$
—
$
5,572.2
Used
3,959.6
—
3,959.6
3,345.6
—
3,345.6
Parts and service
1,794.0
(29.7
)
1,764.3
1,594.6
(26.4
)
1,568.2
Finance and insurance, net
462.7
104.8
567.5
401.7
103.3
505.0
Total revenue
$
12,609.0
$
75.1
$
12,684.1
$
10,914.0
$
76.9
$
10,991.0
Cost of sales
New
$
5,924.4
$
—
$
5,924.4
$
5,040.1
$
—
$
5,040.1
Used
3,767.3
—
3,767.3
3,135.6
—
3,135.6
Parts and service
782.9
(29.7
)
753.2
717.3
(14.4
)
702.9
Finance and insurance
—
40.5
40.5
—
29.6
29.6
Total cost of sales
$
10,474.5
$
10.8
$
10,485.3
$
8,893.0
$
15.2
$
8,908.2
Gross profit
New
$
468.3
$
—
$
468.3
$
532.1
$
—
$
532.1
Used
192.3
—
192.3
210.0
—
210.0
Parts and service
1,011.1
—
1,011.1
877.3
(12.0
)
865.3
Finance and insurance, net
462.7
64.3
527.0
401.7
73.8
475.4
Total gross profit
$
2,134.5
$
64.3
$
2,198.8
$
2,021.0
$
61.8
$
2,082.8
Selling, general, and
administrative
$
1,422.2
$
(10.6
)
$
1,411.6
$
1,219.9
$
(16.6
)
$
1,203.3
Income from operations
$
537.0
$
59.0
$
596.0
$
758.3
$
70.7
$
829.0
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
September 30, 2024
September 30, 2023
September 30, 2024
June 30, 2024
(Dollars in millions)
Adjusted leverage
ratio:
Long-term debt
$
3,382.8
$
3,601.3
Cash and floor plan offset
(257.5
)
(478.6
)
TCA cash
55.6
14.7
Availability under our used vehicle floor
plan facility
(310.3
)
(286.1
)
Adjusted long-term net debt
$
2,870.6
$
2,851.2
Calculation of earnings before interest,
taxes, depreciation and amortization ("EBITDA"):
Net income
$
126.3
$
169.2
$
357.1
$
400.0
Depreciation and amortization
18.9
17.0
73.0
71.1
Income tax expense
43.4
56.8
122.2
135.5
Swap and other interest expense
45.7
38.7
176.1
169.1
Earnings before interest, taxes,
depreciation and amortization ("EBITDA")
$
234.3
$
281.8
$
728.3
$
775.7
Non-core items - expense (income):
Gain on dealership divestitures
$
(5.0
)
$
—
$
(8.6
)
$
(3.6
)
Gain on sale of real estate
—
(3.6
)
—
(3.6
)
Legal settlement
—
—
(1.0
)
—
Asset impairments
—
—
252.6
252.6
Professional fees associated with
acquisition
—
1.8
2.4
4.1
Fixed assets write-off
—
—
1.1
1.1
Hail damage
4.0
—
5.3
3.1
Total non-core items
(1.0
)
(1.8
)
251.7
253.7
Adjusted EBITDA
$
233.3
$
280.0
$
980.0
$
1,029.5
Impact of dealership acquisitions and
divestitures
$
17.2
$
26.6
Transaction adjusted EBITDA
$
997.2
$
1,056.1
Transaction adjusted net leverage
ratio
2.9
2.7
Three Months Ended September
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
$ 466.5
$ —
$ —
$ (4.0)
$ —
$ 462.5
Income from operations
$ 232.7
$ —
$ —
$ 4.0
$ —
$ 236.7
Net income
$ 126.3
$ (5.0)
$ —
$ 4.0
$ 0.5
$ 125.8
Weighted average common share outstanding
- diluted
19.8
19.8
Diluted EPS
$ 6.37
$ (0.14)
$ —
$ 0.11
$ —
$ 6.35
SG&A as a % of gross profit
65.0 %
64.4 %
Income from operations as a % of
revenue
5.5 %
5.6 %
Three Months Ended September
30, 2023
GAAP
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
$
391.7
$
3.6
$
(1.8
)
$
—
$
393.5
Income from operations
$
264.7
$
(3.6
)
$
1.8
$
—
$
262.9
Net income
$
169.2
$
(3.6
)
$
1.8
$
0.5
$
167.9
Weighted average common share outstanding
- diluted
20.7
20.7
Diluted EPS
$
8.19
$
(0.13
)
$
0.06
$
—
$
8.12
SG&A as a % of gross profit
58.2
%
—
%
—
%
—
%
58.4
%
Income from operations as a % of
revenue
7.2
%
—
%
—
%
—
%
7.2
%
Nine Months Ended September
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
$
1,411.6
$
—
$
—
$
(7.1
)
$
—
$
1,404.6
Income from operations
$
596.0
$
—
$
135.4
$
7.1
$
—
$
738.4
Net income
$
301.5
$
(8.6
)
$
135.4
$
7.1
$
(33.4
)
$
402.0
Weighted average common share outstanding
- diluted
20.1
20.1
Diluted EPS
$
14.99
$
(0.32
)
$
5.05
$
0.26
$
—
$
19.98
SG&A as a % of gross profit
64.2
%
63.9
%
Income from operations as a % of
revenue
4.7
%
5.8
%
Nine Months Ended September
30, 2023
GAAP
Gain on dealership
divestiture, net
Legal settlement
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
$
1,203.3
$
—
$
1.9
$
(4.3
)
$
3.6
$
(1.8
)
$
—
$
1,202.7
Income from operations
$
829.0
$
—
$
(1.9
)
$
4.3
$
(3.6
)
$
1.8
$
—
$
829.6
Net income
$
547.0
$
(13.5
)
$
(1.9
)
$
4.3
$
(3.6
)
$
1.8
$
3.2
$
537.3
Weighted average common share outstanding
- diluted
21.1
21.1
Diluted EPS
$
25.91
$
(0.48
)
$
(0.07
)
$
0.15
$
(0.13
)
$
0.06
$
—
$
25.45
SG&A as a % of gross profit
57.8
%
—
%
—
%
—
%
—
%
—
%
—
%
57.7
%
Income from operations as a % of
revenue
7.5
%
—
%
—
%
—
%
—
%
—
%
—
%
7.5
%
Three Months Ended September
30, 2024
GAAP
Hail damage
Non-GAAP adjusted
(In millions)
Selling, general and administrative (Same
Store)
$
394.3
$
(4.0
)
$
390.3
SG&A as a % of gross profit (Same
Store)
64.5
%
63.8
%
For the Nine Months Ended
September 30,
2024
2023
(In millions)
Adjusted cash
flow from operations:
Cash provided by operating activities
$
427.0
$
239.8
Change in Floor Plan Notes
Payable—Non-Trade, net
(70.6
)
(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
175.9
233.7
Change in Floor Plan Notes Payable—Trade
associated with floor plan offset, adjusted for acquisition and
divestitures
(45.1
)
42.9
Adjusted cash flow provided by operating
activities
$
487.2
$
513.6
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241028451604/en/
Investors & Reporters May Contact: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
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