DULUTH, Ga. –(BUSINESS WIRE)–April 25, 2024–
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one of the largest U. S. automotive retail and service corporations, reported a net source of revenue of $147 million in the first quarter of 2024 ($7. 21 consistent with diluted interest), a 19% cut from $181 million ($8. 37 per diluted share) in the first quarter of 2023.
“We had a strong first quarter, surpassing $4 billion in profits for the first time in our company’s history,” said David Hult, Asbury’s president and CEO. “Our functionality has been driven by the hard work of our team members, our focus on same-store operations, and the strength and strategic compatibility of our acquisitions – we are accelerating the effects of our integration efforts. We deliver on our ongoing commitment to consistently increase same-store used vehicle volume by retailing more than 2,700 additional sets sequentially, even in a tight stock market, and new products from vehicle compatibility performed well despite demanding volume situations similar to the logo. mix. As we anticipated, margins continue to return to a more normalized level. Our effects demonstrate how our strategic investments have allowed us to generate strong effects despite difficult market conditions. The strong functionality of our business allowed us to repurchase 240,000 shares during the quarter as part of our capital allocation strategy as part of our multi-year expansion strategy.
The monetary measures described below come with GAAP and adjusted (non-GAAP) monetary measures. See “Financial Disclosures and Non-GAAP, Same-Store and Other Reconciliations” and the reconciliations of non-GAAP measures used here.
There were no non-GAAP changes in net source of revenue for the first quarter of 2024 or the first quarter of 2023.
First Quarter 2024 Operating Summary
Total company vs. first quarter of 2023:
Same for the first quarter of 2023:
Liquidity and leverage
As of March 31, 2024, the Company had $225 million of money and ground plan compensation accounts (which excludes $9 million of money in Total Care Auto, powered by Landcar) and availability under the ground plan of used vehicles and revolver diversity of $487 million. for a total of $487 million. $712 million in liquidity. The Company’s adjusted net leverage ratio, which is calculated as disclosed under our credit facility, was 2. 6x at the end of the quarter.
Share buybacks
The Company repurchased approximately 240,000 percent for $50 million in the first quarter of 2024. As of March 31, 2024, the Company had $153 million remaining in its percentage repurchase authorization.
The percentages would possibly be purchased from time to time on the open market, in privately traded transactions, or otherwise permitted by federal securities legislation and other legal and contractual requirements. The extent to which the Company will repurchase its percentages, the amount of percentages, and the timing of any repurchases will depend on points such as Asbury’s percentage price, general economic and market conditions, the potential impact on its capital structure, and the expected return from competitive uses. Capital investments as a strategic corridor, acquisitions and equity investments, and other considerations. The program does not obligate the Company to repurchase an express number of percentages and could be modified, suspended or terminated at any time without notice.
Call for Results
Additional comments related to the effects of the first quarter will be provided at the earnings convention call on Thursday, April 25, 2024 at 10 a. m. ET.
The convention call will be simulcast live on the Internet. Webcast, as well as other curtains, can be accessed by logging into https://investors. asburyauto. com. On this site you will be able to get a repeat and the curtains that accompany it. at least 30 days.
In addition, the public will have access to live audio. Participants may register for the conference call five to ten minutes prior to the scheduled start of the conference call by dialing:
Server:
(877) 407-2988
International:
1 (201) 389-0923
Passcode:
13745907
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company headquartered in Duluth, Georgia, is one of the largest automotive shops in the United States. In late 2020, Asbury embarked on a multi-year plan to strategically increase its profits and profitability. through biological operations, acquisitive expansion and cutting-edge technologies, with its customer-centric technique as Asbury’s constant north star. As of March 31, 2024, Asbury operated 157 new vehicle dealerships, comprised of 206 franchises, representing 31 domestic and foreign vehicle brands. Asbury also operates Total Care Auto, Powered via Landcar, a leading provider of service contracts and other vehicle coverage products, as well as 37 collision repair centers. Asbury offers a wide diversity of automotive products and services, adding new and used vehicles; portions and services, including vehicle repair and maintenance services, replacement portions, and collision repair services; and financing and insurance products, adding third-party vehicle financing and aftermarket products such as extended service contracts, debt forgiveness with guaranteed asset coverage and prepaid maintenance. Asbury is ranked 18th on the Forbes 2023 list of America’s Best Midsize Companies. Asbury is identified as one of the Best Places to Work in America in 2023 by Newsweek, as well as one of the Best Companies to Work for in Retail by U. S. Newsweek. News & World Report.
For more information, www. asburyauto. com.
Forward-Looking Statements
This press release comprises “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than past facts and may include statements regarding goals, plans, objectives and projections. . related to Asbury’s monetary situation. position, liquidity, effects of transactions, money flow, leverage, market position, timing and amount of any repurchases of inventory and broker portfolio, methods of earning profits, operating results, profit projections, expectations, plans, Clicklane control projections and objectives. for long-term operations, scale and performance, integration plans and expected synergies from acquisitions, capital allocation strategy, business strategy. These statements are based on existing expectations and ideals of control and involve significant dangers and uncertainties that could possibly cause the effects to differ materially from those expressed in the statements. These dangers and uncertainties come with, among others, our inability to achieve the expected benefits of recently completed transactions; our inability to temporarily and adequately integrate completed transactions and the diversion of control from ongoing activities and normal business responsibilities; our inability to undertake long-term acquisitions or divestitures and the risks arising therefrom; any disruption of the chain of origin has an effect on our industry and business, market factors, Asbury’s relationships with automobile brands and other suppliers and its monetary and operational abilities, force majeure events, acts of war or other incidents and shortages of semiconductor chips and other components, which may also have a negative effect on the origin of automobile brands and/or cause problems in retail sales; dangers related to Asbury’s indebtedness and our ability to comply with applicable covenants in our various financing agreements, or to seek waivers from such covenants if necessary; festival-related hazards in the automotive retail and service industries, general national and local economic situations, government regulations, legislation, additional adjustments to state automobile franchise laws, adverse outcomes of litigation and other proceedings , and Asbury’s ability to execute its strategy and operational objectives. methods and initiatives, adding its five-year strategic plan, Asbury’s ability to capitalize on profits from its brokerage portfolio, Asbury’s ability to capitalize on opportunities to repurchase its debt and equity securities or to acquire homes it currently rents, and Asbury’s ability to stay within his limits. target diversity for capital spending. There can be no assurance that Asbury’s plans for its long-term operations will be well implemented or prove commercially successful.
These and other points of threat, as well as other points that may cause actual effects to differ materially from those expressed or implied by our forward-looking statements, are and will be discussed from time to time in Asbury’s U. S. filings. Securities and Exchange Commission, adding its most recent annual report on Form 10-K and all quarterly reports filed on Form 10-Q. These forward-looking statements and threats, uncertainties and other items speak only as of the date of this press release. We assume no legal responsibility to publicly update any forward-looking statements, whether as a result of new information, long-term events or otherwise.
Non-GAAP, Same Store & Monetary Disclosure & Reconciliation
In addition to comparing monetary condition and the effects of our consistent GAAP relationships, the control periodically evaluates and analyzes the effects and any effects on the Company of strategic decisions and moves such as, among other things, collecting reduction, expansion and profitability improvement projects and other outdoor occasions of general or “major” or consistent conditions or conditions, contemplating safe-choice monetary measures that are not GAAP ready. These measures come with “Adjusted Adjusted Earnings”, “Adjusted Net Earnings”, “Adjusted or Consistent with Hedging Margins”, “Adjusted EBITDA”, “Adjusted Diluted Earnings Consistent with Equity (“EPS”), “Adjusted Diluted Earnings (“Adjusted Earnings Consistent with Interest”), “Adjusted Earnings (EPS”), “Adjusted Adjusted Oconsistent with margins”, “Adjusted Adjusted or consistent with margins”, “Adjusted Adjusted or consistent with margins”
The amounts from the same outlets come with dealer data for the same months in the comparison period, starting with the first month we had the dealership. In addition, amounts similar to concessions granted are excluded from the comparative period.
The amounts presented here have been calculated as unrounded amounts for all periods filed, and therefore some amounts would possibly not be calculated or connected to a past filing due to rounding.
CONSOLIDATED INCOME STATEMENT (In millions, consistent with participation)
(Unaudited)
For the 3 months ended March 31
• ��
2024
2023
INCOME:
New Vehicle
$
2 064,3
$
1 767,7
17
%
Used Vehicle:
Retailer
1 191,4
1 021,6
17
%
wholesale
165,5
104,9
58
%
Total Used Vehicles
1 356,9
1 126,5
20
%
Parts & Service
590,4
515,6
15
%
Finance & Insurance, Net
189,7
172,5
ten
%
TOTAL REVENUE
4 201,2
3 582,3
17
%
COST OF SALES:
New Vehicle
1 901,4
1 588,8
20
%
Used Vehicle:
Retailer
1 126,4
951. 0
18
%
wholesale
158,6
98,5
61
%
Total Used Vehicles
1 285,0
1 049,5
22
%
Parts & Service
256. 2
233,5
ten
%
Finance & Insurance
8. 6
14. 3
(40
)%
TOTAL COST OF GOODS SOLD
3 451,2
2 886,1
20
%
GROSS PROFIT
750,0
696,2
8
%
OPERATING COSTS:
Selling and administrative expenses.
468,6
403,0
sixteen
%
Depreciation and amortization
18. 7
16. 7
12
%
OPERATING PROFIT
262,8
276,5
(5
)%
OTHER EXPENSES:
Floor Plan Interest Charges
22,8
0,6
New Mexico
Other expenses, net
44. 1
37. 3
18
%
Total other expenses, net
66,9
38,0
76
%
PRE-TAX INCOME
195,8
238,5
(18
)%
Income from tax expenses
48,8
57. 1
(15
)%
NET REVENUES
$
147. 1
$
181,4
(19
)%
EARNINGS PER SHARE:
Basic-
Net Income
$
7. 24
$
8. 42
(14
)%
Diluted-
Net Income
$
7. 21
$
8. 37
(14
)%
WEIGHTED AVERAGE IN VALIDITY OF EQUITY:
Basic
20. 3
21. 6
Performance Action Units
0,1
0,1
Diluted
20. 4
21. 7
New Mexico—Meaningless
ASBURY AUTOMOTIVE GROUP, INC.
Supplementary information – Consolidated (In millions)
(Unaudited)
March 31, 2024
December 31, 2023
Increase decrease)
% Change
SELECTED DATA FROM THE BALANCE SHEET
Cash and cash equivalents
$
29,0
$
45,7
$
(16,8
)
(37
)%
Inventories, (a)
1 862,9
1 768,3
94,6
5
%
Total assets
2 922,4
3 057,1
(134,7
)
(4
)%
Notes of the plan to be paid
1 690,4
1 785,7
(95,3
)
(5
)%
Full Liability
2 757,4
2 875,7
(118,3
)
(4
)%
CAPITALIZATION:
Long-term debt (including portion)
$
3 192,6
$
3 206,2
$
(13,6
)
—
%
Equity
3 346,9
3 244,1
102,8
3
%
Total
$
6. 539,5
$
6 450,3
$
89,2
1
%
(a) Excluding $83. 3 million and $84. 5 million of shares classified as held for sale as of March 31, 2024 and December 31, 2023, respectively.
March 31, 2024
December 31, 2023
March 31, 2023
Days of Supply
New Vehicle Inventory
54
43
30
Used Vehicle Inventory
27
32
27
_____________________________
Inventory origin days are calculated based on new and used inventory, in units, at the end of the reporting period and a 30-day unit sales history.
Brand Mix: New Vehicle Sales Through Brands
For the 3 months ended March 31
2024
2023
Luxury
Lexus
11
%
ten
%
Mercedes-Benz
8
%
9
%
BMW
3
%
3
%
Land Rover
2
%
2
%
Porsche
1
%
2
%
Acura
1
%
2
%
Another luxury
4
%
6
%
Total Luxury
29
%
34
%
Imports
Toyota
20
%
15
%
sling
9
%
9
%
Hyundai
4
%
5
%
Nissan
2
%
4
%
Subaru
2
%
2
%
Kia
2
%
2
%
Other Imports
2
%
2
%
Total imports
41
%
38
%
servant
Ford
12
%
ten
%
Chrysler, Dodge, Jeep, Ram
ten
%
13
%
Chevrolet, Buick, GMC
7
%
5
%
National Total
30
%
28
%
Total New Vehicle Revenue
100
%
100
%
For the 3 months ended March 31
2024
2023
Composition of revenue
new vehicle
49. 1
%
49. 3
%
Used Vehicle Retail
28. 4
%
28,5
%
Wholesale Used Vehicles
3. 9
%
2. 9
%
Parts & Service
14. 1
%
14. 4
%
Finance & Insurance, Net
4. 5
%
4. 8
%
Total Revenue
100,0
%
100,0
%
Composition of gross profit
New Vehicle
21. 7
%
25,7
%
Used Vehicle Retail
8. 7
%
10. 1
%
Wholesale Used Vehicles
0,9
%
0,9
%
Parts & Service
44,6
%
40,5
%
Finance & Insurance, Net
24. 2
%
22,7
%
Total Gross Profit
100,0
%
100,0
%
ASBURY AUTOMOTIVE GROUP, INC.
OPERATIONAL HIGHLIGHTS – CONSOLIDATED (In millions)
(Unaudited)
For the 3 months ended March 31
• ��
2024
2023
Income
New Vehicle
$
2 064,3
$
1 767,7
17
%
Used Vehicle:
Retailer
1 191,4
1 021,6
17
%
wholesale
165,5
104,9
58
%
Total Used Vehicles
1 356,9
1 126,5
20
%
Parts & Service
590,4
515,6
15
%
Finance & Insurance, Net
189,7
172,5
ten
%
Total Revenue
$
4 201,2
$
3 582,3
17
%
Gross Profit
New Vehicle
$
162,8
$
178,9
(9
)%
Used Vehicle:
Retailer
65,0
70. 6
(8
)%
wholesale
6. 9
6. 4
9
%
Total Used Vehicles
71,9
77,0
(7
)%
Parts & Service
334. 1
282. 1
18
%
Finance & Insurance, Net
181. 1
158,2
14
%
Total Gross Profit
$
750,0
$
696,2
8
%
Unit Sales
New Vehicle:
Luxury
8 578
8 429
2
%
Import
21 487
17 389
24
%
servant
10 612
8 688
22
%
All-new vehicle
40 677
34 506
18
%
Used Vehicle Retail
39 489
32 989
20
%
Used-to-new ratio
97. 1
%
95,6
%
The average selling price
New Vehicle
$
50 747
$
51 228
(1
)%
Used Vehicle Retail
$
30 169
$
30 969
(3
)%
Average gross profit consistent with the unit
New Vehicle:
Luxury
$
7 215
$
8 588
(sixteen
)%
Import
2 826
3 682
(23
)%
servant
3 789
4 888
(22
)%
All-new vehicle
4 003
5 184
(23
)%
Used Vehicle Retail
1 646
2 141
(23
)%
Finance & Insurance
2 259
2 344
(4
)%
Initial Performance (1)
5 101
6 041
(sixteen
)%
Gross margin
All-new vehicle
7. 9
%
10. 1
%
(223) points
Used Vehicle Retail
5. 5
%
6. 9
%
(146) points
Parts & Service
56,6
%
54,7
%
188 points
Total Gross Profit Margin
17. 9
%
19. 4
%
(158) points
Operating Expenses
Selling and administrative expenses.
$
468,6
$
403,0
sixteen
%
SG
62,5
%
57,9
%
459 points
Operating source of revenue as % of sales
6. 3
%
7. 7
%
(146) points
Operating Source of Revenue as % of Gross Margin
35,0
%
39,7
%
(468) points
_____________________________
(1) Initial return is calculated as gross profit from new vehicles, used retail vehicles, and finance and insurance (net), divided by combined sales of new and used retail units.
STORE OPERATION HIGHLIGHTS – CONSOLIDATED (In millions)
(Unaudited)
For the 3 months ended March 31
• ��
2024
2023
Income
New Vehicle
$
1 750,1
$
1 761,1
(1
)%
Used Vehicle:
Retailer
965. 3
1 009,7
(4
)%
wholesale
129. 2
104. 3
24
%
Total Used Vehicles
1 094,5
1 114,0
(2
)%
Parts & Service
522,0
513. 3
2
%
Finance & Insurance, Net
155,5
172. 1
(ten
)%
Total Revenue
$
3 522,1
$
3 560,5
(1
)%
Gross Profit
New Vehicle
$
137. 1
$
178,0
(23
)%
Used Vehicle:
Retailer
52,5
70,0
(25
)%
wholesale
4. 3
6. 5
(33
)%
Total Used Vehicles
56,8
76,4
(26
)%
Parts & Service
296,8
280,9
6
%
Finance & Insurance, Net
146,9
157,8
(7
)%
Total Gross Profit
$
637,7
$
693. 1
(8
)%
Unit Sales
New Vehicle:
Luxury
8 209
8 311
(1
)%
Import
18 304
17 389
5
%
servant
7 870
8 688
(9
)%
All-new vehicle
34 383
34 388
—
%
Used Vehicle Retail
31 875
32 466
(2
)%
Used-to-new ratio
92,7
%
94,4
%
The average selling price
New Vehicle
$
50 900
$
51 214
(1
)%
Used Vehicle Retail
$
30 285
$
31 101
(3
)%
Average gross profit consistent with the unit
New Vehicle:
Luxury
$
7 271
$
8 604
(15
)%
Import
2 559
3 683
(31
)%
servant
3 888
4 889
(20
)%
All-new vehicle
3 988
5 177
(23
)%
Used Vehicle Retail
1 647
2 155
(24
)%
Finance & Insurance
2 218
2 360
(6
)%
Initial Performance (1)
5 080
6 070
(sixteen
)%
Gross margin
All-new vehicle
7. 8
%
10. 1
%
(227) points
Used Vehicle Retail
5. 4
%
6. 9
%
(149) points
Parts & Service
56,9
%
54,7
%
213 points
Total Gross Profit Margin
18. 1
%
19. 5
%
(136) points
Operating Expenses
Selling and administrative expenses.
$
397,0
$
399,7
(1
)%
SG
62,3
%
57,7
%
459 points
_____________________________
(1)
Initial return is calculated as the gross profit of new vehicles, used retail vehicles, and finance and insurance (net), divided by the combined sales of new and used retail units.
ASBURY AUTOMOTIVE GROUP, INC.
SEGMENTED INFORMATION (Unaudited)
Three months ended March 31, 2024
Three months ended March 31, 2023
Distributors
TCA after eliminations
Total Company
Distributors
TCA after eliminations
Total Company
(In millions)
Income
new
$
2 064,3
$
—
$
2 064. 3
$
1 767,7
$
—
$
1 767,7
Used
1 356,9
—
1 356,9
1 126,5
—
1 126,5
Parts & Service
598,8
(8,5
)
590,4
524,5
(9,0
)
515,6
Finance & Insurance, Net
159. 1
30,7
189,7
137,6
35,0
172,5
Total Revenue
$
4 179,0
$
22. 2
$
4 201,2
$
3 556,3
$
26,0
$
3 582,3
Cost of goods sold
new
$
1 901,4
$
—
$
1 901,4
$
1 588,8
$
—
$
1 588,8
Used
1 285,0
—
1 285,0
1 049,5
—
1 049,5
Parts & Service
260,8
(4,6
)
256. 2
238,4
(4,9
)
233,5
Finance & Insurance
—
8. 6
8. 6
—
14. 3
14. 3
Total Cost of Sales
$
3 447,2
$
4. 0
$
3 451,2
$
2 876,7
$
9. 4
$
2 886,1
Gross Profit
new
$
162,8
$
—
$
162,8
$
178,9
$
—
$
178,9
Used
71,9
—
71,9
77,0
—
77,0
Parts & Service
338,0
(3,8
)
334. 1
286. 2
(4. 1
)
282. 1
Finance & Insurance, Net
159. 1
22. 1
181. 1
137,6
20,7
158,2
Total Gross Profit
$
731,8
$
18. 2
$
750,0
$
679,6
$
16. 6
$
696,2
Selling and administrative expenses.
$
472,9
$
(4. 3
)
$
468,6
$
406. 9
$
(3,9
)
$
403,0
Income from operations
$
243. 3
$
19. 5
$
262,8
$
256. 1
$
20. 3
$
276,5
ASBURY AUTOMOTIVE GROUP INC.
Additional Disclosures
(Unaudited)
The following tables provide reconciliations for our non-GAAP measures:
For the 3 months completed.
During the twelve months ended
March 31, 2024
March 31, 2023
March 31, 2024
December 31, 2023
($ million)
Adjusted Leverage Ratio:
Long-term debt
$
3 192,6
$
3 206,2
Cash Compensation & Floor Plan
(234,1
)
(140. 9
)
CAW Cash
9. 2
13. 2
Pre-owned site plans are available from our service
(1,4
)
—
Long-term adjusted debt
$
2 966,2
$
3 078,5
Calculation of earnings before interest, taxes, depreciation and amortization (“EBITDA”):
Net Income
$
147. 1
$
181,4
$
568. 2
$
602,5
Depreciation and amortization
18. 7
16. 7
69,7
67,7
Income from tax expenses
48,8
57. 1
190,4
198,8
Swap and interest expense
44. 1
38. 4
164. 1
158,4
Earnings, interest, taxes, depreciation and amortization (“EBITDA”)
$
258,6
$
293,7
$
992,4
$
1 027,4
Non-essential items – Expenditure (Revenue):
Gain/Loss on Concession Sales, Net
$
—
$
—
$
(13,5
)
$
(13,5
)
Gain on the sale of real estate
—