- Third quarter net income of $205 million, an increase of 39%
over prior year quarter, and an increase of 43% over prior year
quarter on an adjusted net income (a non-GAAP measure) basis (no
adjustments in current quarter)
- Third quarter adjusted EBITDA (a non-GAAP measure) increased
54% over prior year quarter to $329 million
- Record third quarter EPS of $9.23 per diluted share, an
increase of 22% over prior year quarter on a GAAP basis and 25% on
an adjusted basis (no adjustments in the current quarter)
- Third quarter revenue of $3.9 billion, an increase of 61% over
prior year quarter
- Gross profit of $768 million, an increase of 60% over prior
year quarter; operating margin of 8.1%
- Third quarter fixed operations revenue increased 80% over prior
year quarter
- Third quarter F&I revenue increased 99% over prior year
quarter
- The estimated, pretax impact of store closures due to Hurricane
Ian was $4.0 million ($0.14 earnings per diluted share)
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one
of the largest automotive retail and service companies in the U.S.,
reported record third quarter 2022 net income of $205 million
($9.23 per diluted share), an increase of 39% from $147 million
($7.54 per diluted share) in the prior year quarter. Third quarter
2022 adjusted net income, a non-GAAP measure, increased 43%
year-over-year to $205 million ($9.23 per diluted share) compared
to adjusted net income of $144 million ($7.36 per diluted share) in
third quarter 2021.
“This quarter, our team navigated a challenging macro
environment, including the impact of Hurricane Ian, to drive strong
results. With our great team members across the country, the right
brands, and the right locations, we delivered for our shareholders
and showcased the resiliency of our business model,” said David
Hult, Asbury’s President and Chief Executive Officer. “We are
pleased with the momentum of our growth and our ability to maintain
our disciplined cost strategy, while strengthening our balance
sheet.”
The financial measures discussed below include both GAAP and
adjusted (non-GAAP) financial measures. Please see reconciliations
for non-GAAP metrics included in the accompanying financial
tables.
There were no adjustments to net income in the third quarter
2022.
Adjusted net income for the third quarter 2021 excludes
acquisition expenses of $3.5 million ($0.13 per diluted share) and
gain on divestiture of $8.0 million ($0.31 per diluted share).
Third Quarter 2022 Operational
Summary
Total company vs. 3rd Quarter 2021:
- Revenue of $3.9 billion, an increase of 61%
- Gross profit increased 60%
- Gross margin decreased 10 bps to 19.9%
- New vehicle unit volume increased 47%; new vehicle revenue
increased 59%; gross profit increased 60%
- Used vehicle retail unit volume increased 40%; used vehicle
retail revenue increased 52%; gross profit increased 22%
- Finance and insurance (F&I) per vehicle retailed (PVR)
increased 30%
- Parts and service revenue increased 80%; gross profit increased
64%
- Adjusted SG&A as a percentage of gross profit increased to
57.1%, an increase of 180 bps
- Operating income and adjusted operating income increased 56%
and 53%, respectively
- Operating margin decreased 20 bps to 8.1% and adjusted
operating margin decreased 40 bps to 8.1%
- EPS increased 22% to $9.23; adjusted EPS increased 25% to
$9.23
Same store (dealership only) vs. 3rd Quarter 2021:
- Revenue decreased 3%
- Gross profit decreased 2%
- Gross margin expanded 10 bps to 20.0%
- New vehicle unit volume decreased 16%; new vehicle revenue
decreased 7%; new vehicle gross profit decreased 4%
- Used vehicle retail unit volume decreased 10%; used vehicle
retail revenue was flat; used vehicle retail gross profit decreased
30%; used to new ratio increased to 120%
- F&I PVR increased 18%
- Parts and service revenue increased 12%; gross profit increased
10%; customer pay gross profit increased 16%
- Adjusted SG&A as a percentage of gross profit increased to
55.8%, an increase of 50 bps
Clicklane metrics:
- Over 6,800 vehicles sold, an all-time record and an increase of
13% over prior year quarter
- Over 92% of transactions were customers incremental to Asbury
Automotive
- 41% of Clicklane sales had a trade-in and, of those with
payoffs, 100% utilized the payoff tool
- Total front-end PVR of $3,450 and F&I PVR of $2,093,
resulting in total front-end yield of $5,543
- Conversion rate more than double that of traditional internet
leads and growing sequentially
- 95% of deliveries within a 20-mile radius of an Asbury
dealership
- Average transaction time of ~8 minutes for cash deals and ~14
minutes for financed deals
- Clicklane now has been fully rolled out to all dealerships
Liquidity and Leverage
As of September 30, 2022, the Company had cash and floorplan
offset accounts of $537 million (which excludes $98 million of cash
at TCA) and availability under the used vehicle floorplan line and
revolver of $636 million for a total of approximately $1.2 billion
in liquidity. The Company’s adjusted net leverage ratio was 1.9x at
quarter end, compared to 2.7x at the end of 2021 and 2.1x at the
end of the second quarter 2022.
Earnings Call
Additional commentary regarding the third quarter results will
be provided during the earnings conference call on Thursday,
October 27, 2022, at 10:00 a.m. ET.
The conference call will be simulcast live on the internet and
can be accessed by logging onto https://investors.asburyauto.com. A
replay will be available on this site for 30 days.
In addition, live audio of the call will be accessible to the
public by calling (866) 580-3963 (domestic) or +1 (786) 697-3501
(international); confirmation code – 9193183. Callers should dial
in approximately 5 to 10 minutes before the call begins.
A conference call replay will be available two hours following
the call for seven days and can be accessed by calling (866)
595-5357; passcode – 9193183.
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 five-year
plan to increase revenue and profitability strategically through
organic and acquisitive growth as well as their innovative
Clicklane digital vehicle purchasing platform, with its
guest-centric approach as Asbury’s constant North Star. Asbury
currently operates 148 dealerships, consisting of 198 franchises,
representing 31 domestic and foreign brands of vehicles. Asbury
also operates seven stand-alone used vehicle stores, 34 collision
repair centers, an auto auction, a used vehicle wholesale business
and an F&I product provider. 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.
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 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 and expectations of our
management with respect to, among other things: changes in general
economic and business conditions, including increases in interest
rates and rising fuel prices, any impact of COVID-19 on the
automotive industry in general, the automotive retail industry in
particular and our customers, suppliers, vendors and business
partners; our relationships with vehicle manufacturers; our ability
to maintain our margins; operating cash flows and availability of
capital; capital expenditures; the amount of our indebtedness; the
completion of any future acquisitions and divestitures; future
return targets; future annual savings; general economic trends,
including consumer confidence levels, interest rates, inflation,
and fuel prices; and automotive retail industry trends. 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 impact from the
COVID-19 pandemic on our industry and business, market factors,
Asbury's relationships with, and the financial and operational
stability of, vehicle manufacturers and other suppliers, acts of
God, acts of war or other incidents and the shortage of
semiconductor chips and other components, which may adversely
impact supply from vehicle manufacturers and/or present retail
sales challenges; risks associated with Asbury's indebtedness and
our ability to comply with applicable covenants in our various
financing agreements, or to obtain waivers of these covenants as
necessary; risks related to competition in the automotive retail
and service industries, general economic conditions both nationally
and locally, governmental regulations, legislation, including
changes in automotive state franchise laws, adverse results in
litigation and other proceedings, and Asbury's ability to execute
its strategic and operational strategies and initiatives, including
its five-year strategic plan, Asbury's ability to leverage gains
from its dealership portfolio, Asbury's ability to capitalize on
opportunities to repurchase its debt and equity securities or
purchase properties that it currently leases, and Asbury's ability
to stay within its targeted range for capital expenditures. There
can be no guarantees that Asbury's plans for future operations will
be successfully implemented or that they will prove to be
commercially successful.
These and other risk factors that could cause actual results to
differ materially from those expressed or implied in our
forward-looking statements are and will be discussed in Asbury's
filings with the U.S. Securities and Exchange Commission from time
to time, including its most recent annual report on Form 10-K and
any subsequently filed quarterly reports on Form 10-Q. These
forward-looking statements and such risks, uncertainties and other
factors speak only as of the date of this press release. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Disclosure and
Reconciliation, Same Store Data and Other Data
In addition to evaluating the financial condition and results of
our operations in accordance with GAAP, from time to time
management evaluates and analyzes results and any impact on the
Company of strategic decisions and actions relating to, among other
things, cost reduction, growth, and profitability improvement
initiatives, and other events outside of normal, or "core,"
business and operations, by considering certain alternative
financial measures not prepared in accordance with GAAP. These
measures include "Pro forma adjusted leverage ratio," "Adjusted
income from operations," "Adjusted net income," "Adjusted operating
margins," "Adjusted EBITDA" and "Adjusted diluted earnings per
share ("EPS")." 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. 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. Non-GAAP measures do not have
definitions under GAAP and may be defined differently by and not be
comparable to similarly titled measures used by other companies. As
a result, any non-GAAP financial measures considered and evaluated
by management are reviewed in conjunction with a review of the most
directly comparable measures calculated in accordance with GAAP.
Management cautions investors not to place undue reliance on such
non-GAAP measures, but also to consider them with the most directly
comparable GAAP measures. In their evaluation of results from time
to time, management excludes items that do not arise directly from
core operations, or are otherwise of an unusual or non-recurring
nature. Because these non-core, unusual or non-recurring charges
and gains materially affect Asbury's financial condition or results
in the specific period in which they are recognized, management
also evaluates, and makes resource allocation and performance
evaluation decisions based on, the related non-GAAP measures
excluding such items. In addition to using such non-GAAP measures
to evaluate results in a specific period, management believes that
such measures may provide more complete and consistent comparisons
of operational performance on a period-over-period historical basis
and a better indication of expected future trends. Management
discloses these non-GAAP measures, and the related reconciliations,
because it believes investors use these metrics in evaluating
longer-term period-over-period performance, and to allow investors
to better understand and evaluate the information used by
management to assess operating performance.
Same store amounts consist of information from dealerships for
identical months in each comparative period, commencing with the
first month we owned the dealership. Additionally, amounts related
to divested dealerships are excluded from each comparative
period.
Amounts presented herein have been calculated using non-rounded
amounts for all periods presented and therefore certain amounts may
not compute or tie to prior presentation due to rounding.
ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (In
millions, except per share data)
(Unaudited)
For the Three Months Ended
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
2022
2021
2022
2021
REVENUE:
New vehicle
$
1,799.2
$
1,129.5
59
%
$
5,519.3
$
3,649.6
51
%
Used vehicle:
Retail
1,249.8
823.8
52
%
3,739.5
2,190.5
71
%
Wholesale
80.9
55.3
46
%
304.6
195.5
56
%
Total used vehicle
1,330.7
879.1
51
%
4,044.1
2,386.1
69
%
Parts and service
536.1
297.1
80
%
1,558.2
851.5
83
%
Finance and insurance
200.0
100.4
99
%
606.4
295.7
105
%
TOTAL REVENUE
3,865.9
2,406.1
61
%
11,727.9
7,182.9
63
%
COST OF SALES:
New vehicle
1,598.0
1,003.5
59
%
4,873.7
3,324.0
47
%
Used vehicle:
Retail
1,165.8
755.2
54
%
3,459.0
2,001.0
73
%
Wholesale
82.8
51.8
60
%
299.6
173.7
73
%
Total used vehicle
1,248.6
806.9
55
%
3,758.5
2,174.7
73
%
Parts and service
238.5
115.7
106
%
693.6
324.4
114
%
Finance and insurance
13.0
—
—
%
39.5
—
—
%
TOTAL COST OF SALES
3,098.1
1,926.1
61
%
9,365.4
5,823.0
61
%
GROSS PROFIT
767.8
480.0
60
%
2,362.5
1,359.9
74
%
OPERATING EXPENSES:
Selling, general and administrative
438.2
268.7
63
%
1,341.9
778.2
72
%
Depreciation and amortization
17.1
10.7
59
%
53.6
30.6
75
%
Other operating income, net
(1.1
)
(0.4
)
144
%
(3.0
)
(4.6
)
(36
) %
INCOME FROM OPERATIONS
313.6
201.0
56
%
970.0
555.7
75
%
OTHER EXPENSES:
Floor plan interest expense
1.9
1.4
31
%
6.0
6.5
(7
) %
Other interest expense, net
38.6
14.8
160
%
113.8
43.2
163
%
Gain on dealership divestitures, net
—
(8.0
)
(100
) %
(4.4
)
(8.0
)
(45
) %
Total other expenses, net
40.5
8.2
NM
115.4
41.6
177
%
INCOME BEFORE INCOME TAXES
273.1
192.8
42
%
854.6
514.0
66
%
Income tax expense
68.1
45.8
49
%
210.5
122.1
72
%
NET INCOME
$
205.0
$
147.0
39
%
$
644.1
$
391.9
64
%
EARNINGS PER COMMON SHARE:
Basic—
Net income
$
9.26
$
7.62
22
%
$
28.83
$
20.31
42
%
Diluted—
Net income
$
9.23
$
7.54
22
%
$
28.72
$
20.10
43
%
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic
22.1
19.3
22.3
19.3
Restricted stock
0.1
0.1
0.1
0.1
Performance share units
—
0.1
—
0.1
Diluted
22.2
19.5
22.4
19.5
______________________________
NM—Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures-Consolidated (In
millions)
(Unaudited)
September 30, 2022
December 31, 2021
Increase
(Decrease)
% Change
SELECTED BALANCE SHEET DATA
Cash and cash equivalents
$
141.3
$
178.9
$
(37.5
)
(21
) %
Inventory, net (a)
822.2
718.4
103.8
14
%
Total current assets
1,812.6
1,929.4
(116.9
)
(6
) %
Floor plan notes payable (b)
28.2
564.5
(536.3
)
(95
) %
Total current liabilities
1,158.7
1,597.9
(439.2
)
(27
) %
CAPITALIZATION:
Long-term debt (including current portion)
(c)
$
3,325.5
$
3,582.6
$
(257.1
)
(7
) %
Shareholders' equity
2,642.9
2,115.5
527.4
25
%
Total
$
5,968.4
$
5,698.1
$
270.3
5
%
_____________________________
(a) Excludes $42.9 million and $24.1
million of Inventory classified as Assets held for sale as of
September 30, 2022 and December 31, 2021, respectively
(b) Excluding $20.8 million and $9.1
million of Floor plan notes payable classified as Liabilities
associated with assets held for sale as of September 30, 2022 and
December 31, 2021, respectively
(c) Excluding $38.9 million of Debt
classified as Liabilities associated with assets held for sale as
of September 30, 2022
September 30, 2022
December 31, 2021
September 30, 2021
Days Supply
New vehicle inventory
19
8
12
Used vehicle inventory
31
34
28
_____________________________
Days supply of inventory is calculated
based on new and used inventory levels at the end of each reporting
period and a 30-day historical cost of sales.
Brand Mix - New Vehicle Revenue by
Brand
For the Three Months Ended
September 30,
2022
2021
Luxury
Lexus
9
%
13
%
Mercedes-Benz
8
%
11
%
BMW
4
%
5
%
Porsche
2
%
2
%
Acura
2
%
4
%
Land Rover
1
%
2
%
Volvo
1
%
2
%
Other luxury
3
%
3
%
Total luxury
32
%
45
%
Imports
Toyota
16
%
12
%
Honda
9
%
16
%
Hyundai
5
%
3
%
Nissan
3
%
4
%
Kia
2
%
3
%
Subaru
2
%
1
%
Volkswagen
2
%
1
%
Other imports
—
%
1
%
Total imports
39
%
41
%
Domestic
Chrysler, Dodge, Jeep, Ram
16
%
6
%
Ford
9
%
4
%
Chevrolet, Buick, GMC
5
%
4
%
Total domestic
30
%
14
%
Total New Vehicle Revenue
100
%
100
%
For the Three Months Ended
September 30,
2022
2021
Revenue mix
New vehicle
46.5
%
46.9
%
Used vehicle retail
32.3
%
34.2
%
Used vehicle wholesale
2.1
%
2.3
%
Parts and service
13.9
%
12.3
%
Finance and insurance
5.2
%
4.2
%
Total revenue
100.0
%
100.0
%
Gross profit mix
New vehicle
26.2
%
26.3
%
Used vehicle retail
10.9
%
14.3
%
Used vehicle wholesale
(0.2
) %
0.7
%
Parts and service
38.8
%
37.8
%
Finance and insurance
24.3
%
20.9
%
Total gross profit
100.0
%
100.0
%
ASBURY AUTOMOTIVE GROUP, INC.
STATEMENTS OF INCOME-CONSOLIDATED (In
millions)
(Unaudited)
For the Three Months Ended
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
2022
2021
2022
2021
Revenue
New vehicle
$
1,799.2
$
1,129.5
59
%
$
5,519.3
$
3,649.6
51
%
Used vehicle:
Retail
1,249.8
823.8
52
%
3,739.5
2,190.5
71
%
Wholesale
80.9
55.3
46
%
304.6
195.5
56
%
Total used vehicle
1,330.7
879.1
51
%
4,044.1
2,386.1
69
%
Parts and service
536.1
297.1
80
%
1,558.2
851.5
83
%
Finance and insurance
200.0
100.4
99
%
606.4
295.7
105
%
Total Revenue
$
3,865.9
$
2,406.1
61
%
$
11,727.9
$
7,182.9
63
%
Gross
profit
New vehicle
$
201.2
$
126.0
60
%
$
645.6
$
325.6
98
%
Used vehicle:
Retail
84.0
68.6
22
%
280.5
189.5
48
%
Wholesale
(1.9
)
3.6
(152
) %
5.0
21.9
(77
) %
Total used vehicle
82.1
72.2
14
%
285.5
211.4
35
%
Parts and service
297.6
181.4
64
%
864.5
527.1
64
%
Finance and insurance
186.9
100.4
86
%
566.8
295.7
92
%
Total gross profit
$
767.8
$
480.0
60
%
$
2,362.5
$
1,359.9
74
%
Operating
expenses
Selling, general and administrative
$
438.2
$
268.7
63
%
$
1,341.9
$
778.2
72
%
Operating
metrics
SG&A as a % of gross profit
57.1
%
56.0
%
110 bps
56.8
%
57.2
%
(40) bps
Adjusted SG&A as a % of gross
profit
57.1
%
55.3
%
180 bps
56.8
%
57.0
%
(20) bps
Income from operations as a % of
revenue
8.1
%
8.4
%
(20) bps
8.3
%
7.7
%
50 bps
Income from operations as a % of gross
profit
40.8
%
41.9
%
(100) bps
41.1
%
40.9
%
20 bps
Adjusted income from operations as a % of
revenue
8.1
%
8.5
%
(40) bps
8.3
%
7.7
%
50 bps
Adjusted income from operations as a % of
gross profit
40.8
%
42.6
%
(180) bps
41.0
%
40.9
%
10 bps
Finance and insurance average gross profit
per unit
$
2,480
$
1,911
30
%
$
2,450
$
1,827
34
%
Total parts and service gross margin
55.5
%
61.1
%
(550) bps
55.5
%
61.9
%
(640) bps
Total gross profit margin
19.9
%
19.9
%
(10) bps
20.1
%
18.9
%
120 bps
ASBURY AUTOMOTIVE GROUP, INC.
STATEMENTS OF INCOME-DEALERSHIPS (In
millions)
(unaudited)
For the Three Months Ended
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
2022
2021
2022
2021
Revenue
New vehicle
$
1,799.2
$
1,129.5
59
%
$
5,519.3
$
3,649.6
51
%
Used vehicle:
Retail
1,249.8
823.8
52
%
3,739.5
2,190.5
71
%
Wholesale
80.9
55.3
46
%
304.6
195.5
56
%
Total used vehicle
1,330.7
879.1
51
%
4,044.1
2,386.1
69
%
Parts and service
544.8
297.1
83
%
1,582.8
851.5
86
%
Finance and insurance, net
163.9
100.4
63
%
516.5
295.7
75
%
Total Revenue
$
3,838.5
$
2,406.1
60
%
$
11,662.7
$
7,182.9
62
%
Gross
profit
New vehicle
$
201.2
$
126.0
60
%
$
645.6
$
325.6
98
%
Used vehicle:
Retail
84.0
68.6
22
%
280.5
189.5
48
%
Wholesale
(1.9
)
3.6
(152
) %
5.0
21.9
(77
) %
Total used vehicle
82.1
72.2
14
%
285.5
211.4
35
%
Parts and service
301.8
181.4
66
%
876.4
527.1
66
%
Finance and insurance, net
163.9
100.4
63
%
516.5
295.7
75
%
Total gross profit
$
749.0
$
480.0
56
%
$
2,324.1
$
1,359.9
71
%
Unit
sales
New vehicle:
Luxury
8,251
7,972
3
%
25,407
26,568
(4
) %
Import
18,584
13,491
38
%
58,826
45,125
30
%
Domestic
9,662
3,300
193
%
30,135
12,054
150
%
Total new vehicle
36,497
24,763
47
%
114,368
83,747
37
%
Used vehicle retail
38,874
27,761
40
%
117,028
78,136
50
%
Used to new ratio
106.5
%
112.1
%
102.3
%
93.3
%
Average selling
price
New vehicle
$
49,296
$
45,612
8
%
$
48,259
$
43,579
11
%
Used vehicle retail
$
32,150
$
29,674
8
%
$
31,954
$
28,035
14
%
Average gross
profit per unit
New vehicle:
Luxury
$
8,409
$
7,549
11
%
$
8,529
$
6,277
36
%
Import
4,197
3,719
13
%
4,441
2,489
78
%
Domestic
5,569
4,749
17
%
5,564
3,865
44
%
Total new vehicle
5,512
5,089
8
%
5,645
3,888
45
%
Used vehicle retail
2,160
2,470
(13
) %
2,397
2,426
(1
) %
Finance and insurance
2,175
1,911
14
%
2,232
1,827
22
%
Front end yield (1)
5,958
5,616
6
%
6,235
5,009
24
%
Gross
margin
New vehicle
11.2
%
11.2
%
— bps
11.7
%
8.9
%
280 bps
Used vehicle retail
6.7
%
8.3
%
(160) bps
7.5
%
8.7
%
(120) bps
Parts and service
55.4
%
61.1
%
(570) bps
55.4
%
61.9
%
(650) bps
Total gross profit margin
19.5
%
19.9
%
(40) bps
19.9
%
18.9
%
100 bps
Operating
expenses
Selling, general and administrative
$
444.0
$
268.7
65
%
$
1,361.1
$
778.2
75
%
Adjusted Selling, general and
administrative
$
444.0
$
265.2
67
%
$
1,361.1
$
774.7
76
%
SG&A as a % of gross profit
59.3
%
56.0
%
330 bps
58.6
%
57.2
%
130 bps
Adjusted SG&A as a % of gross
profit
59.3
%
55.3
%
400 bps
58.6
%
57.0
%
160 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-DEALERSHIPS (In millions)
(Unaudited)
For the Three Months Ended
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
2022
2021
2022
2021
Revenue
New vehicle
$
1,031.4
$
1,113.5
(7
) %
$
3,117.9
$
3,601.8
(13
) %
Used Vehicle:
Retail
811.4
813.5
—
%
2,438.6
2,159.6
13
%
Wholesale
34.2
55.0
(38
) %
125.2
194.5
(36
) %
Total used vehicle
845.6
868.5
(3
) %
2,563.8
2,354.0
9
%
Parts and service
329.3
293.5
12
%
942.2
841.0
12
%
Finance and insurance
102.2
99.4
3
%
326.5
292.8
12
%
Total revenue
$
2,308.5
$
2,374.9
(3
) %
$
6,950.5
$
7,089.6
(2
) %
Gross
profit
New vehicle
$
119.0
$
124.0
(4
) %
$
368.6
$
320.4
15
%
Used Vehicle:
Retail
47.1
67.7
(30
) %
159.3
187.1
(15
) %
Wholesale
(1.9
)
3.6
(153
) %
—
21.7
(100
) %
Total used vehicle
45.2
71.3
(37
) %
159.3
208.8
(24
) %
Parts and service
196.3
179.1
10
%
562.8
520.1
8
%
Finance and insurance
102.2
99.4
3
%
326.5
292.8
12
%
Total gross profit
$
462.7
$
473.8
(2
) %
$
1,417.2
$
1,342.1
6
%
Unit
sales
New vehicle:
Luxury
7,070
7,694
(8
) %
21,640
25,733
(16
) %
Import
10,521
13,491
(22
) %
32,900
45,125
(27
) %
Domestic
2,989
3,300
(9
) %
9,285
12,054
(23
) %
Total new vehicle
20,580
24,485
(16
) %
63,825
82,912
(23
) %
Used vehicle retail
24,774
27,416
(10
) %
75,262
77,096
(2
) %
Used to new ratio
120.4
%
112.0
%
117.9
%
93.0
%
Average selling
price
New vehicle
$
50,117
$
45,475
10
%
$
48,851
$
43,441
12
%
Used vehicle retail
$
32,754
$
29,673
10
%
$
32,402
$
28,011
16
%
Average gross
profit per unit
New vehicle:
Luxury
$
8,531
$
7,555
13
%
$
8,397
$
6,272
34
%
Import
4,267
3,721
15
%
4,342
2,490
74
%
Domestic
4,609
4,752
(3
) %
4,743
3,867
23
%
Total new vehicle
5,782
5,065
14
%
5,775
3,864
49
%
Used vehicle retail
1,901
2,471
(23
) %
2,116
2,427
(13
) %
Finance and insurance
2,254
1,915
18
%
2,348
1,830
28
%
Front end yield (1)
5,916
5,610
5
%
6,143
5,001
23
%
Gross
margin
Total new vehicle
11.5
%
11.1
%
40 bps
11.8
%
8.9
%
290 bps
Used vehicle retail
5.8
%
8.3
%
(250) bps
6.5
%
8.7
%
(220) bps
Parts and service
59.6
%
61.0
%
(140) bps
59.7
%
61.8
%
(210) bps
Total gross profit margin
20.0
%
19.9
%
10 bps
20.4
%
18.9
%
150 bps
Operating
expenses
Selling, general and administrative
$
258.3
$
265.5
(3
) %
$
801.0
$
768.9
4
%
Adjusted Selling, general and
administrative
$
258.3
$
262.0
(1
) %
$
801.0
$
765.4
5
%
SG&A as a % of gross profit
55.8
%
56.0
%
(20) bps
56.5
%
57.3
%
(80) bps
Adjusted SG&A as a % of gross
profit
55.8
%
55.3
%
50 bps
56.5
%
57.0
%
(50) 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, 2022
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
1,799.2
$
—
$
1,799.2
Used
1,330.7
—
1,330.7
Parts and service
544.8
(8.7
)
536.1
Finance and insurance
163.9
36.1
200.0
Total revenue
$
3,838.5
$
27.4
$
3,865.9
Cost of sales
New
$
1,598.0
$
—
$
1,598.0
Used
1,248.6
—
1,248.6
Parts and service
243.0
(4.5
)
238.5
Finance and insurance
—
13.0
13.0
Total cost of sales
$
3,089.5
$
8.6
$
3,098.1
Gross profit
New
$
201.2
$
—
$
201.2
Used
82.1
—
82.1
Parts and service
301.8
(4.2
)
297.6
Finance and insurance
163.9
23.0
186.9
Total gross profit
$
749.0
$
18.8
$
767.8
Selling, general and
administrative
$
444.0
$
(5.8
)
$
438.2
Income from operations
$
291.4
$
22.3
$
313.6
Nine Months Ended September
30, 2022
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
5,519.3
$
—
$
5,519.3
Used
4,044.1
—
4,044.1
Parts and service
1,582.8
(24.7
)
1,558.2
Finance and insurance
516.5
89.9
606.4
Total revenue
$
11,662.7
$
65.2
$
11,727.9
Cost of sales
New
$
4,873.7
$
—
$
4,873.7
Used
3,758.5
—
3,758.5
Parts and service
706.5
(12.8
)
693.6
Finance and insurance
—
39.5
39.5
Total cost of sales
$
9,338.6
$
26.7
$
9,365.4
Gross profit
New
$
645.6
$
—
$
645.6
Used
285.5
—
285.5
Parts and service
876.4
(11.8
)
864.5
Finance and insurance
516.5
50.3
566.8
Total gross profit
$
2,324.1
$
38.5
$
2,362.5
Selling, general and
administrative
$
1,361.1
$
(19.2
)
$
1,341.9
Income from operations
$
918.1
$
51.9
$
970.0
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, 2022
September 30, 2021
September 30, 2022
June 30, 2022
(Dollars in millions)
Adjusted leverage
ratio:
Long-term debt (including current portion
and held for sale)
$
3,364.4
$
3,387.9
Cash and floor plan offset
(635.6
)
(404.4
)
TCA cash
98.5
160.3
Availability under our used vehicle floor
plan facility
(198.5
)
(327.8
)
Adjusted long-term net debt
$
2,628.7
$
2,816.0
Calculation of earnings before interest,
taxes, depreciation and amortization ("EBITDA"):
Net Income
$
205.0
$
147.0
$
784.6
$
726.5
Depreciation and amortization
17.1
10.7
64.9
58.5
Income tax expense
68.1
45.8
253.7
231.3
Swap and other interest expense
38.6
14.9
165.1
141.4
Earnings before interest, taxes,
depreciation and amortization ("EBITDA")
$
328.8
$
218.3
$
1,268.2
$
1,157.7
Non-core items - expense (income):
Gain on dealership divestitures, net
$
—
$
(8.0
)
$
(4.4
)
$
(12.4
)
Gain on sale of real estate
—
—
(0.9
)
(0.9
)
Professional fees associated with
acquisitions
—
3.5
1.4
4.9
Total non-core items
—
(4.6
)
(3.9
)
(8.5
)
Adjusted EBITDA
$
328.8
$
213.8
$
1,264.3
$
1,149.3
Pro forma impact of acquisition and
divestitures on EBITDA
$
96.3
$
214.2
Pro forma Adjusted EBITDA
$
1,360.6
$
1,363.5
Pro forma Adjusted net leverage ratio
1.9
2.1
Three Months Ended September
30, 2022
GAAP
(Gain) loss on
divestiture
Real estate related
gain
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
438.2
$
—
$
—
$
—
$
438.2
Income from operations
$
313.6
$
—
$
—
$
—
$
313.6
Net income
$
205.0
$
—
$
—
$
—
$
205.0
Weighted average common share outstanding
- diluted
22.2
22.2
Diluted EPS
$
9.23
$
—
$
—
$
—
$
9.23
SG&A as a % of gross profit
57.1
%
—
%
—
%
—
%
57.1
%
Income from operations as a % of
revenue
8.1
%
—
%
—
%
—
%
8.1
%
Dealerships:
Selling, general and administrative
$
444.0
$
—
$
—
$
—
$
444.0
SG&A as a % of gross profit
59.3
%
—
%
—
%
—
%
59.3
%
Three Months Ended September
30, 2021
GAAP
Professional fees associated
with acquisitions
Gain on divestiture
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
268.7
$
(3.5
)
$
—
$
—
$
265.2
Income from operations
$
201.0
$
3.5
$
—
$
—
$
204.5
Net income
147.0
$
3.5
$
(8.0
)
$
1.1
$
143.5
Weighted average common share outstanding
- diluted
19.5
19.5
Diluted EPS
$
7.54
$
0.18
$
(0.41
)
$
0.05
$
7.36
SG&A as a % of gross profit
56.0
%
(0.7
) %
—
%
—
%
55.3
%
Income from operations as a % of
revenue
8.4
%
0.1
%
—
%
—
%
8.5
%
Dealerships:
Selling, general and administrative
$
268.7
$
(3.5
)
$
—
$
—
$
265.2
SG&A as a % of gross profit
56.0
%
(0.7
) %
—
%
—
%
55.3
%
Nine Months Ended September
30, 2022
GAAP
Gain on divestitures
Real estate related
gain
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
1,341.9
$
—
$
—
$
—
$
1,341.9
Income from operations
$
970.0
$
—
$
(0.9
)
$
—
$
969.0
Net income
$
644.1
$
(4.4
)
$
(0.9
)
$
1.3
$
640.1
Weighted average common share outstanding
- diluted
22.4
22.4
Diluted EPS
$
28.72
$
(0.20
)
$
(0.04
)
$
0.06
$
28.54
SG&A as a % of gross profit
56.8
%
—
%
—
%
—
%
56.8
%
Income from operations as a % of
revenue
8.3
%
—
%
—
%
—
%
8.3
%
Dealerships:
Selling, general and administrative
$
1,361.1
$
—
$
—
$
—
$
1,361.1
SG&A as a % of gross profit
58.6
%
—
%
—
%
—
%
58.6
%
Nine Months Ended September
30, 2021
GAAP
Professional fees associated
with acquisitions
Legal settlements
Real estate related
gain
Real estate related
charges
Gain on dealership
divestitures
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
778.2
$
(3.5
)
$
—
$
—
$
—
$
—
$
—
$
774.7
Income from operations
$
555.7
$
3.5
$
(3.5
)
$
(1.8
)
$
2.1
$
—
$
—
$
555.9
Net income
$
391.9
$
3.5
$
(3.5
)
$
(1.8
)
$
2.1
$
(8.0
)
$
1.9
$
386.0
Weighted average common share outstanding
- diluted
19.5
19.5
Diluted EPS
$
20.10
$
0.18
$
(0.18
)
$
(0.10
)
$
0.11
$
(0.42
)
$
0.10
19.79
SG&A as a % of gross profit
57.2
%
(0.2
) %
—
%
—
%
—
%
—
%
—
%
57.0
%
Income from operations as a % of
revenue
7.7
%
—
%
—
%
—
%
—
%
—
%
—
%
7.7
%
Dealerships:
Selling, general and administrative
$
778.2
$
(3.5
)
$
—
$
—
$
—
$
—
$
—
$
774.7
SG&A as a % of gross profit
57.2
%
(0.2
) %
—
%
—
%
—
%
—
%
—
%
57.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221027005123/en/
Investors & Reporters May Contact: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
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