- Net income, inclusive of gains on dealership divestitures, net,
of $353 million (+151%) in the fourth quarter and $997 million
(+87%) for the full year
- Adjusted net income, a non-GAAP measure, of $202 million (+24%)
in the fourth quarter and $842 million (+54%) for the full
year
- Adjusted EBITDA, a non-GAAP measure, of $319 million (+29%) in
the fourth quarter and $1.3 billion (+61%) for the year
- EPS of $15.95 per diluted share (+148%) in the fourth quarter
and $44.61 per diluted share (+68%) for the full year
- Adjusted EPS, a non-GAAP measure, of $9.12 per diluted share
(+22%) in the fourth quarter and $37.66 per diluted share (+38%)
for the full year
- Revenue of $3.7 billion (+40%) in the fourth quarter and $15.4
billion (+57%) for the full year
- Gross profit of $738 million (+36%) in the fourth quarter and
$3.1 billion (+63%) for the full year
- Operating margin of 8.2% in the fourth quarter and 8.2% for the
year; Adjusted operating margin, a non-GAAP measure, of 8.2% in the
fourth quarter and 8.3% for the year
- All-time record Clicklane sales of over 8,400 in the quarter
and over 27,500 for the full year
- Repurchased 1.6 million shares for the full year; Board of
Directors approved an increase in share repurchase authorization of
$108 million to $200 million
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one
of the largest automotive retail and service companies in the U.S.,
reported fourth quarter 2022 net income of $353 million ($15.95 per
diluted share), an increase of 151% from $141 million ($6.44 per
diluted share) in the prior year quarter. Fourth quarter 2022
adjusted net income, a non-GAAP measure, increased 24%
year-over-year to $202 million ($9.12 per diluted share) compared
to adjusted net income of $163 million ($7.46 per diluted share) in
fourth quarter 2021.
“Our team members continued to drive excellence this quarter as
they have during all of 2022. We are pleased with the progress of
our dealership acquisitions and initiatives for growth, such as
Total Care Auto and Clicklane, including the launch of F&I
2.0,” said David Hult, Asbury’s President and Chief Executive
Officer. “With our leading operational efficiency, our diversified
revenue streams, our robust cash flow, our strong balance sheet,
and our long-term focus on the guest-centric experience, we believe
we are well-positioned going into 2023 to achieve our strategic
goals.”
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.
Adjusted net income for the fourth quarter 2022 excludes
expenses related to a significant acquisition that did not
materialize of $2.7 million ($0.09 per diluted share) and gains on
dealership divestitures, net, primarily related to the Crown North
Carolina stores, of $203 million ($6.92 per diluted share).
Adjusted net income for the fourth quarter 2021 excludes
acquisition expenses and acquisition financing expenses of $28.9
million ($1.02 per diluted share).
Fourth Quarter 2022 Operational
Summary
Total company vs. 4th Quarter 2021:
- Revenue increased $1.1 billion to $3.7 billion, growth of
40%
- Gross profit increased 36%
- Gross margin decreased 51 bps to 19.9%
- New vehicle unit volume increased 41%; new vehicle revenue
increased 44%; new vehicle gross profit increased 20%
- Used vehicle retail unit volume increased 27%; used vehicle
retail revenue increased 26%; used vehicle retail gross profit
decreased 8%
- Finance and insurance (F&I) per vehicle retailed (PVR)
increased 30%
- Parts and service revenue increased 56%; gross profit increased
48%
- Adjusted SG&A as a percentage of gross profit increased to
56.7%, an increase of 247 bps
- Operating income and adjusted operating income increased 28%
and 29%, respectively
- Operating margin decreased 73 bps to 8.2% and adjusted
operating margin decreased 71 bps to 8.2%
- Adjusted EPS increased 22% to $9.12
- Adjusted EBITDA increased 29% to $319 million
Same store (dealership only) vs. 4th Quarter 2021:
- Revenue increased 1%
- Gross profit decreased 2%
- Gross margin decreased 68 bps to 19.9%
- New vehicle unit volume was flat; new vehicle revenue increased
3%; new vehicle gross profit decreased 11%
- Used vehicle retail unit volume decreased 6%; used vehicle
retail revenue decreased 5%; used vehicle retail gross profit
decreased 35%; used-to-new ratio of 101%
- F&I PVR increased 12%
- Parts and service revenue increased 12%; gross profit increased
13%; customer pay gross profit increased 14%
- Adjusted SG&A as a percentage of gross profit increased to
56.5%, an increase of 66 bps
Clicklane metrics:
- Over 8,400 vehicles sold, an all-time record, and an increase
of 24% over third quarter 2022
- Total front-end PVR of $3,518 and F&I PVR of $2,001,
resulting in total front-end yield of $5,519
- Over 92% of Clicklane sales were incremental customers to the
Company
- Conversion rate more than double that of traditional internet
leads and growing sequentially
- Average delivery within an 18.6 mile radius of the
dealership
- Average transaction time of ~8 minutes for cash deals and ~14
minutes for financed deals
- Overall approval rate of 87%
- 51 lenders and financial institutions enabled in our Loan
Marketplace
- Average customer Google review of 4.8/5 stars
Full Year 2022 Results
For the full year 2022, the Company reported record net income
of $997 million ($44.61 per diluted share) compared to $532 million
($26.49 per diluted share) in the prior year, a 68% increase in
EPS. Adjusted net income (a non-GAAP measure) for 2022 was $842
million ($37.66 per diluted share) compared to $549 million ($27.29
per diluted share) in the prior year, a 38% increase in adjusted
EPS.
Total revenue for the full year 2022 was $15.4 billion, up $5.6
billion from the prior year; total revenue on a same-store basis
was down 1% from the prior year. Total adjusted EBITDA for the full
year 2022 was a record $1.3 billion, up $508 million from the prior
year. Adjusted operating cash flow for the full year was $987
million, up $355 million from the prior year.
Liquidity and Leverage
As of December 31, 2022, the Company had cash and floorplan
offset accounts of $873 million (which excludes $54 million of cash
at TCA) and availability under the used vehicle floorplan line and
revolver of $668 million for a total of approximately $1.5 billion
in liquidity. The Company’s adjusted net leverage ratio was 1.7x at
quarter end, compared to 2.7x at the end of 2021.
Divestitures
In the fourth quarter, the Company completed nine dealership
divestitures and received $322 million in proceeds. The annualized
revenue from these nine dealerships was approximately $590
million.
For full year 2022, the Company completed divestitures of
sixteen dealerships and received $701 million in proceeds. Revenue
from these divestitures was $683 million for 2022.
Share Repurchases
The Company repurchased approximately 1.6 million shares for
approximately $300 million for the full year 2022. During the
fourth quarter of 2022, the Company adopted a Rule 10b5-1 trading
plan that was effective for trading December 19, 2022 through
February 1, 2023. From October 1, 2022 through February 1, 2023,
the Company repurchased approximately 600,000 shares for $108
million.
On January 26, 2023, Asbury’s Board of Directors approved an
increase in the Company’s common stock share repurchase
authorization by $108 million to $200 million. As of February 1,
2023, the Company had $200 million remaining on its share
repurchase authorization.
The shares may be purchased from time to time in the open
market, in privately negotiated transactions or in other manners as
permitted by federal securities laws and other legal and
contractual requirements. The extent to which the Company
repurchases its shares, the number of shares and the timing of any
repurchase will depend on such factors as Asbury’s stock price,
general economic and market conditions, the potential impact on its
capital structure, the expected return on competing uses of capital
such as strategic dealership acquisitions and capital investments
and other considerations. The program does not require the Company
to repurchase any specific number of shares, and may be modified,
suspended or terminated at any time without further notice.
Earnings Call
Additional commentary regarding the fourth quarter results will
be provided during the earnings conference call on Thursday,
February 2, 2023, 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 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:
13735471
A conference call replay will be available three hours following
the call for seven days and can be accessed by calling:
Domestic:
(877) 660-6853
International:
+1 (201) 612-7415
Passcode:
13735471
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 December 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 139 dealerships, consisting of 187 franchises,
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, seven stand-alone used vehicle stores, 32 collision
repair centers, an auto auction, and a used vehicle wholesale
business. 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 "Adjusted income from operations," "Adjusted net
income," "Adjusted operating margins," "Adjusted EBITDA," "Adjusted
diluted earnings per share ("EPS"),” 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 Ended
December 31,
% Change
For the Twelve Months Ended
December 31,
% Change
2022
2021
2022
2021
REVENUE:
New vehicle
$
1,846.3
$
1,284.4
44
%
$
7,365.6
$
4,934.1
49
%
Used vehicle:
Retail
1,089.3
865.4
26
%
4,828.8
3,055.9
58
%
Wholesale
63.7
64.2
(1
)%
368.3
259.7
42
%
Total used vehicle
1,153.0
929.6
24
%
5,197.1
3,315.6
57
%
Parts and service
516.1
331.4
56
%
2,074.2
1,182.9
75
%
Finance and insurance, net
190.6
109.4
74
%
797.0
405.1
97
%
TOTAL REVENUE
3,705.9
2,654.8
40
%
15,433.8
9,837.7
57
%
COST OF SALES:
New vehicle
1,647.9
1,119.6
47
%
6,521.6
4,443.6
47
%
Used vehicle:
Retail
1,022.8
792.9
29
%
4,481.7
2,794.0
60
%
Wholesale
62.5
59.7
5
%
362.1
233.4
55
%
Total used vehicle
1,085.3
852.6
27
%
4,843.8
3,027.3
60
%
Parts and service
228.0
136.6
67
%
921.6
461.0
100
%
Finance and insurance
6.7
3.6
87
%
46.3
3.6
NM
TOTAL COST OF SALES
2,967.9
2,112.5
40
%
12,333.3
7,935.5
55
%
GROSS PROFIT
738.0
542.3
36
%
3,100.6
1,902.2
63
%
OPERATING EXPENSES:
Selling, general and administrative
421.4
295.7
43
%
1,763.4
1,073.9
64
%
Depreciation and amortization
15.4
11.3
37
%
69.0
41.9
65
%
Other operating income, net
(1.4
)
(0.8
)
77
%
(4.4
)
(5.4
)
(19
)%
INCOME FROM OPERATIONS
302.6
236.1
28
%
1,272.6
791.8
61
%
OTHER (INCOME) EXPENSES:
Floor plan interest expense
2.4
1.7
35
%
8.4
8.2
2
%
Other interest expense, net
38.5
50.7
(24
)%
152.2
93.9
62
%
Gain on dealership divestitures, net
(202.7
)
—
—
%
(207.1
)
(8.0
)
NM
Total other (income) expenses, net
(161.9
)
52.4
NM
(46.5
)
94.1
NM
INCOME BEFORE INCOME TAXES
464.5
183.7
153
%
1,319.1
697.7
89
%
Income tax expense
111.3
43.2
158
%
321.8
165.3
95
%
NET INCOME
$
353.2
$
140.5
151
%
$
997.3
$
532.4
87
%
EARNINGS PER COMMON SHARE:
Basic—
Net income
$
16.02
$
6.47
148
%
$
44.78
$
26.75
67
%
Diluted—
Net income
$
15.95
$
6.44
148
%
$
44.61
$
26.49
68
%
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic
22.0
21.7
22.3
19.9
Restricted stock
0.1
0.1
0.1
0.1
Performance share units
—
—
—
0.1
Diluted
22.1
21.8
22.4
20.1
______________________________
NM—Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures-Consolidated (In
millions)
(Unaudited)
December 31, 2022
December 31, 2021
Increase
(Decrease)
% Change
SELECTED BALANCE SHEET DATA
Cash and cash equivalents
$
235.3
$
178.9
$
56.5
32
%
Inventory, net (a)
959.2
718.4
240.8
34
%
Total current assets
1,909.8
1,929.4
(19.7
)
(1
)%
Floor plan notes payable (b)
51.0
564.5
(513.5
)
(91
)%
Total current liabilities
1,023.9
1,597.9
(574.1
)
(36
)%
CAPITALIZATION:
Long-term debt (including current portion)
(c)
$
3,301.2
$
3,582.6
$
(281.4
)
(8
)%
Shareholders' equity
2,913.0
2,115.5
797.5
38
%
Total
$
6,214.2
$
5,698.1
$
516.1
9
%
_____________________________
(a) Excluding $3.4 million and $24.1
million of Inventory classified as Assets held for sale as of
December 31, 2022 and December 31, 2021, respectively
(b) Excluding $2.8 million and $9.1
million of Floor plan notes payable classified as Liabilities
associated with assets held for sale as of December 31, 2022 and
December 31, 2021, respectively
(c) Excluding $6.8 million of Debt
classified as Liabilities associated with assets held for sale as
of December 31, 2022
December 31, 2022
September 30, 2022
December 31, 2021
Days Supply
New vehicle inventory
26
19
8
Used vehicle inventory
27
31
34
_____________________________
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
December 31,
2022
2021
Luxury
Mercedes-Benz
9
%
12
%
Lexus
7
%
11
%
BMW
4
%
6
%
Porsche
3
%
2
%
Acura
2
%
3
%
Land Rover
2
%
2
%
Other luxury
5
%
6
%
Total luxury
33
%
43
%
Imports
Toyota
17
%
13
%
Honda
9
%
12
%
Hyundai
5
%
3
%
Nissan
4
%
4
%
Kia
2
%
2
%
Subaru
2
%
1
%
Other imports
1
%
2
%
Total imports
40
%
37
%
Domestic
Chrysler, Dodge, Jeep, Ram
13
%
8
%
Ford
9
%
7
%
Chevrolet, Buick, GMC
5
%
4
%
Total domestic
27
%
20
%
Total New Vehicle Revenue
100
%
100
%
For the Three Months Ended
December 31,
2022
2021
Revenue mix
New vehicle
49.8
%
48.4
%
Used vehicle retail
29.4
%
32.6
%
Used vehicle wholesale
1.7
%
2.4
%
Parts and service
13.9
%
12.5
%
Finance and insurance, net
5.1
%
4.1
%
Total revenue
100.0
%
100.0
%
Gross profit mix
New vehicle
26.9
%
30.4
%
Used vehicle retail
9.0
%
13.4
%
Used vehicle wholesale
0.2
%
0.8
%
Parts and service
39.0
%
35.9
%
Finance and insurance, net
24.9
%
19.5
%
Total gross profit
100.0
%
100.0
%
ASBURY AUTOMOTIVE GROUP, INC.
STATEMENTS OF INCOME-CONSOLIDATED (In
millions)
(Unaudited)
For the Three Months Ended
December 31,
% Change
For the Twelve Months Ended
December 31,
% Change
2022
2021
2022
2021
Revenue
New vehicle
$
1,846.3
$
1,284.4
44
%
$
7,365.6
$
4,934.1
49
%
Used vehicle:
Retail
1,089.3
865.4
26
%
4,828.8
3,055.9
58
%
Wholesale
63.7
64.2
(1
)%
368.3
259.7
42
%
Total used vehicle
1,153.0
929.6
24
%
5,197.1
3,315.6
57
%
Parts and service
516.1
331.4
56
%
2,074.2
1,182.9
75
%
Finance and insurance, net
190.6
109.4
74
%
797.0
405.1
97
%
Total revenue
$
3,705.9
$
2,654.8
40
%
$
15,433.8
$
9,837.7
57
%
Gross
profit
New vehicle
$
198.4
$
164.8
20
%
$
844.0
$
490.5
72
%
Used vehicle:
Retail
66.5
72.5
(8
)%
347.1
262.0
32
%
Wholesale
1.1
4.5
(75
)%
6.2
26.4
(77
)%
Total used vehicle
67.7
76.9
(12
)%
353.2
288.3
22
%
Parts and service
288.1
194.8
48
%
1,152.6
721.9
60
%
Finance and insurance, net
183.9
105.8
74
%
750.7
401.5
87
%
Total gross profit
$
738.0
$
542.3
36
%
$
3,100.6
$
1,902.2
63
%
Operating
expenses
Selling, general and administrative
$
421.4
$
295.7
43
%
$
1,763.4
$
1,073.9
64
%
Operating
metrics
SG&A as a % of gross profit
57.1
%
54.5
%
257 bps
56.9
%
56.5
%
41 bps
Adjusted SG&A as a % of gross
profit
56.7
%
54.3
%
247 bps
56.8
%
56.2
%
59 bps
Income from operations as a % of
revenue
8.2
%
8.9
%
(73) bps
8.2
%
8.0
%
20 bps
Income from operations as a % of gross
profit
41.0
%
43.5
%
(254) bps
41.0
%
41.6
%
(58) bps
Adjusted income from operations as a % of
revenue
8.2
%
8.9
%
(71) bps
8.3
%
8.1
%
19 bps
Adjusted income from operations as a % of
gross profit
41.4
%
43.8
%
(244) bps
41.1
%
41.7
%
(61) bps
Finance and insurance average gross profit
per unit
$
2,581
$
1,987
30
%
$
2,480
$
1,866
33
%
Total parts and service gross margin
55.8
%
58.8
%
(294) bps
55.6
%
61.0
%
(546) bps
Total gross profit margin
19.9
%
20.4
%
(51) bps
20.1
%
19.3
%
75 bps
ASBURY AUTOMOTIVE GROUP, INC.
STATEMENTS OF INCOME-DEALERSHIPS (In
millions)
(unaudited)
For the Three Months Ended
December 31,
% Change
For the Twelve Months Ended
December 31,
% Change
2022
2021
2022
2021
Revenue
New vehicle
$
1,846.3
$
1,284.4
44
%
$
7,365.6
$
4,934.1
49
%
Used vehicle:
Retail
1,089.3
865.4
26
%
4,828.8
3,055.9
58
%
Wholesale
63.7
64.2
(1
)%
368.3
259.7
42
%
Total used vehicle
1,153.0
929.6
24
%
5,197.1
3,315.6
57
%
Parts and service
524.7
332.8
58
%
2,107.5
1,184.3
78
%
Finance and insurance, net
154.4
107.0
44
%
670.9
402.7
67
%
Total revenue
$
3,678.4
$
2,653.8
39
%
$
15,341.1
$
9,836.7
56
%
Gross
profit
New vehicle
$
198.4
$
164.8
20
%
$
844.0
$
490.5
72
%
Used vehicle:
Retail
66.5
72.5
(8
)%
347.1
262.0
32
%
Wholesale
1.1
4.5
(75
)%
6.2
26.4
(77
)%
Total used vehicle
67.7
76.9
(12
)%
353.2
288.3
22
%
Parts and service
291.4
193.0
51
%
1,167.8
720.1
62
%
Finance and insurance, net
154.4
107.0
44
%
670.9
402.7
67
%
Total gross profit
$
711.9
$
541.8
31
%
$
3,036.0
$
1,901.7
60
%
Unit
sales
New vehicle:
Luxury
8,497
8,080
5
%
33,904
34,648
(2
)%
Import
19,562
13,288
47
%
78,388
58,413
34
%
Domestic
8,752
4,795
83
%
38,887
16,849
131
%
Total new vehicle
36,811
26,163
41
%
151,179
109,910
38
%
Used vehicle retail
34,436
27,070
27
%
151,464
105,206
44
%
Used to new ratio
93.5
%
103.5
%
100.2
%
95.7
%
Average selling
price
New vehicle
$
50,156
$
49,093
2
%
$
48,721
$
44,892
9
%
Used vehicle retail
$
31,633
$
31,970
(1
)%
$
31,881
$
29,047
10
%
Average gross
profit per unit
New vehicle:
Luxury
$
8,753
$
9,197
(5
)%
$
8,642
$
6,958
24
%
Import
3,960
4,742
(16
)%
4,320
3,001
44
%
Domestic
5,317
5,734
(7
)%
5,460
4,397
24
%
Total new vehicle
5,389
6,300
(14
)%
5,583
4,462
25
%
Used vehicle retail
1,932
2,677
(28
)%
2,291
2,490
(8
)%
Finance and insurance
2,168
2,011
8
%
2,217
1,872
18
%
Front end yield (1)
5,886
6,468
(9
)%
6,152
5,370
15
%
Gross
margin
New vehicle
10.7
%
12.8
%
(209) bps
11.5
%
9.9
%
152 bps
Used vehicle retail
6.1
%
8.4
%
(227) bps
7.2
%
8.6
%
(139) bps
Parts and service
55.5
%
58.0
%
(246) bps
55.4
%
60.8
%
(540) bps
Total gross profit margin
19.4
%
20.4
%
(106) bps
19.8
%
19.3
%
46 bps
Operating
expenses
Selling, general and administrative
$
425.2
$
298.7
42
%
$
1,786.3
$
1,076.9
66
%
Adjusted selling, general and
administrative
$
422.5
$
297.2
42
%
$
1,783.7
$
1,072.0
66
%
SG&A as a % of gross profit
59.7
%
55.1
%
460 bps
58.8
%
56.6
%
221 bps
Adjusted SG&A as a % of gross
profit
59.4
%
54.9
%
449 bps
58.8
%
56.4
%
238 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
December 31,
% Change
For the Twelve Months Ended
December 31,
% Change
2022
2021
2022
2021
Revenue
New vehicle
$
1,089.6
$
1,054.6
3
%
$
4,015.2
$
4,423.0
(9
)%
Used Vehicle:
Retail
704.9
739.0
(5
)%
2,988.0
2,761.1
8
%
Wholesale
34.8
45.0
(23
)%
154.3
232.4
(34
)%
Total used vehicle
739.8
784.0
(6
)%
3,142.3
2,993.6
5
%
Parts and service
308.0
274.9
12
%
1,181.8
1,055.5
12
%
Finance and insurance, net
96.2
88.3
9
%
403.0
362.7
11
%
Total revenue
$
2,233.6
$
2,201.8
1
%
$
8,742.4
$
8,834.8
(1
)%
Gross
profit
New vehicle
$
121.7
$
136.5
(11
)%
$
470.4
$
439.2
7
%
Used Vehicle:
Retail
39.9
61.7
(35
)%
190.6
238.0
(20
)%
Wholesale
1.6
3.5
(55
)%
1.6
24.5
(93
)%
Total used vehicle
41.5
65.2
(36
)%
192.3
262.5
(27
)%
Parts and service
184.5
162.5
13
%
707.3
645.7
10
%
Finance and insurance, net
96.2
88.3
9
%
403.0
362.7
11
%
Total gross profit
$
443.9
$
452.5
(2
)%
$
1,773.0
$
1,710.1
4
%
Unit
sales
New vehicle:
Luxury
7,152
7,340
(3
)%
27,920
32,005
(13
)%
Import
11,713
10,965
7
%
42,179
52,719
(20
)%
Domestic
2,547
3,057
(17
)%
10,799
13,591
(21
)%
Total new vehicle
21,412
21,362
—
%
80,898
98,315
(18
)%
Used vehicle retail
21,675
22,994
(6
)%
91,433
94,336
(3
)%
Used to new ratio
101.2
%
107.6
%
113.0
%
96.0
%
Average selling
price
New vehicle
$
50,888
$
49,367
3
%
$
49,633
$
44,988
10
%
Used vehicle retail
$
32,523
$
32,138
1
%
$
32,679
$
29,269
12
%
Average gross
profit per unit
New vehicle:
Luxury
$
8,782
$
9,283
(5
)%
$
8,563
$
7,041
22
%
Import
3,828
4,696
(18
)%
4,233
2,964
43
%
Domestic
5,525
5,508
—
%
4,892
4,241
15
%
Total new vehicle
5,684
6,388
(11
)%
5,815
4,468
30
%
Used vehicle retail
1,842
2,682
(31
)%
2,085
2,523
(17
)%
Finance and insurance
2,233
1,991
12
%
2,339
1,883
24
%
Front end yield (1)
5,984
6,458
(7
)%
6,175
5,398
14
%
Gross
margin
Total new vehicle
11.2
%
12.9
%
(177) bps
11.7
%
9.9
%
179 bps
Used vehicle retail
5.7
%
8.3
%
(268) bps
6.4
%
8.6
%
(224) bps
Parts and service
59.9
%
59.1
%
76 bps
59.8
%
61.2
%
(133) bps
Total gross profit margin
19.9
%
20.6
%
(68) bps
20.3
%
19.4
%
92 bps
Operating
expenses
Selling, general and administrative
$
253.6
$
254.2
—
%
$
1,008.4
$
978.6
3
%
Adjusted selling, general and
administrative
$
250.9
$
252.8
(1
)%
$
1,005.7
$
973.7
3
%
SG&A as a % of gross profit
57.1
%
56.2
%
95 bps
56.9
%
57.2
%
(35) bps
Adjusted SG&A as a % of gross
profit
56.5
%
55.9
%
66 bps
56.7
%
56.9
%
(21) 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 December
31, 2022
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
1,846.3
$
—
$
1,846.3
Used
1,153.0
—
1,153.0
Parts and service
524.7
(8.6
)
516.1
Finance and insurance, net
154.4
36.2
190.6
Total revenue
$
3,678.4
$
27.5
$
3,705.9
Cost of sales
New
$
1,647.9
$
—
$
1,647.9
Used
1,085.3
—
1,085.3
Parts and service
233.3
(5.3
)
228.0
Finance and insurance
—
6.7
6.7
Total cost of sales
$
2,966.5
$
1.4
$
2,967.9
Gross profit
New
$
198.4
$
—
$
198.4
Used
67.7
—
67.7
Parts and service
291.4
(3.3
)
288.1
Finance and insurance, net
154.4
29.4
183.9
Total gross profit
$
711.9
$
26.1
$
738.0
Selling, general and
administrative
$
425.2
$
(3.7
)
$
421.4
Income from operations
$
274.4
$
28.2
$
302.6
Twelve Months Ended December
31, 2022
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
7,365.6
$
—
$
7,365.6
Used
5,197.1
—
5,197.1
Parts and service
2,107.5
(33.3
)
2,074.2
Finance and insurance, net
670.9
126.0
797.0
Total revenue
$
15,341.1
$
92.7
$
15,433.8
Cost of sales
New
$
6,521.6
$
—
$
6,521.6
Used
4,843.8
—
4,843.8
Parts and service
939.7
(18.1
)
921.6
Finance and insurance
—
46.3
46.3
Total cost of sales
$
12,305.1
$
28.1
$
12,333.3
Gross profit
New
$
844.0
$
—
$
844.0
Used
353.2
—
353.2
Parts and service
1,167.8
(15.1
)
1,152.6
Finance and insurance, net
670.9
79.8
750.7
Total gross profit
$
3,036.0
$
64.6
$
3,100.6
Selling, general and
administrative
$
1,786.3
$
(22.9
)
$
1,763.4
Income from operations
$
1,192.5
$
80.1
$
1,272.6
ASBURY AUTOMOTIVE GROUP INC.
Supplemental Disclosures
(Unaudited)
The following tables provide
reconciliations for our non-GAAP metrics:
For the Three Months
Ended
For the Twelve Months
Ended
December 31, 2022
December 31, 2021
December 31, 2022
September 30, 2022
(Dollars in millions)
Adjusted leverage
ratio:
Long-term debt (including current portion
and held for sale)
$
3,308.0
$
3,364.4
Cash and floor plan offset
(926.3
)
(635.6
)
TCA cash
53.7
98.5
Availability under our used vehicle floor
plan facility
(230.6
)
(198.5
)
Adjusted long-term net debt
$
2,204.9
$
2,628.7
Calculation of earnings before interest,
taxes, depreciation and amortization ("EBITDA"):
Net Income
$
353.2
$
140.5
$
997.3
$
784.6
Depreciation and amortization
15.4
11.3
69.0
64.9
Income tax expense
111.3
43.2
321.8
253.7
Swap and other interest expense
39.1
51.2
152.9
165.1
Earnings before interest, taxes,
depreciation and amortization ("EBITDA")
$
519.0
$
246.1
$
1,541.0
$
1,268.2
Non-core items - expense (income):
Gain on dealership divestitures, net
$
(202.7
)
$
—
$
(207.1
)
$
(4.4
)
Gain on sale of real estate
—
—
(0.9
)
(0.9
)
Deal diligence cost
2.7
—
2.7
—
Professional fees associated with
acquisitions
—
1.4
—
1.4
Total non-core items
(200.0
)
1.4
(205.4
)
(3.9
)
Adjusted EBITDA
$
318.9
$
247.6
$
1,335.7
$
1,264.3
Pro forma impact of acquisition and
divestitures on EBITDA
$
(56.7
)
$
96.3
Pro forma Adjusted EBITDA
$
1,278.9
$
1,360.6
Pro forma Adjusted net leverage ratio
1.7
1.9
Three Months Ended December
31, 2022
GAAP
Gain on divestitures,
net
Deal diligence cost
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
421.4
$
—
$
(2.7
)
$
—
$
418.8
Income from operations
$
302.6
$
—
$
2.7
$
—
$
305.3
Net income
$
353.2
$
(202.7
)
$
2.7
$
48.8
$
201.9
Weighted average common share outstanding
- diluted
22.1
22.1
Diluted EPS
$
15.95
$
(9.15
)
$
0.12
$
2.20
$
9.12
SG&A as a % of gross profit
57.1
%
56.7
%
Income from operations as a % of
revenue
8.2
%
8.2
%
Dealerships:
Selling, general and administrative
$
425.2
$
—
$
(2.7
)
$
—
$
422.5
SG&A as a % of gross profit
59.7
%
59.4
%
Three Months Ended December
31, 2021
GAAP
Bridge commitment fee
Professional fees associated
with acquisitions
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
295.7
$
—
$
(1.4
)
$
—
$
294.3
Income from operations
$
236.1
$
—
$
1.4
$
—
$
237.5
Net income
140.5
$
27.5
$
1.4
$
(6.8
)
$
162.6
Weighted average common share outstanding
- diluted
21.8
21.8
Diluted EPS
$
6.44
$
1.27
$
0.07
$
(0.31
)
$
7.46
SG&A as a % of gross profit
54.5
%
54.3
%
Income from operations as a % of
revenue
8.9
%
8.9
%
Dealerships:
Selling, general and administrative
$
298.7
$
—
$
(1.4
)
$
—
$
297.2
SG&A as a % of gross profit
55.1
%
54.9
%
Twelve Months Ended December
31, 2022
GAAP
Gain on divestitures,
net
Deal diligence cost
Real estate related
gain
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
1,763.4
$
—
$
(2.7
)
$
—
$
—
$
1,760.7
Income from operations
$
1,272.6
$
—
$
2.7
$
(0.9
)
$
—
$
1,274.3
Net income
$
997.3
$
(207.1
)
$
2.7
$
(0.9
)
$
50.1
$
842.0
Weighted average common share outstanding
- diluted
22.4
22.4
Diluted EPS
$
44.61
$
(9.26
)
$
0.12
$
(0.04
)
$
2.24
$
37.66
SG&A as a % of gross profit
56.9
%
56.8
%
Income from operations as a % of
revenue
8.2
%
8.3
%
Dealerships:
Selling, general and administrative
$
1,786.3
$
—
$
(2.7
)
$
—
$
—
$
1,783.7
SG&A as a % of gross profit
58.8
%
58.8
%
Twelve Months Ended December
31, 2021
GAAP
Bridge commitment fees
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
$
1,073.9
$
—
$
(4.9
)
$
—
$
—
$
—
$
—
$
—
$
1,069.0
Income from operations
$
791.8
$
—
$
4.9
$
(3.5
)
$
(1.9
)
$
2.1
$
—
$
—
$
793.4
Net income
$
532.4
$
27.5
$
4.9
$
(3.5
)
$
(1.9
)
$
2.1
$
(8.0
)
$
(5.0
)
$
548.5
Weighted average common share outstanding
- diluted
20.1
20.1
Diluted EPS
$
26.49
$
1.37
$
0.24
$
(0.18
)
$
(0.10
)
$
0.10
$
(0.40
)
$
(0.25
)
27.29
SG&A as a % of gross profit
56.5
%
56.2
%
Income from operations as a % of
revenue
8.0
%
8.1
%
Dealerships:
Selling, general and administrative
$
1,076.9
$
—
$
(4.9
)
$
—
$
—
$
—
$
—
$
—
$
1,072.0
SG&A as a % of gross profit
56.6
%
56.4
%
For the Twelve Months Ended
December 31,
2022
2021
(In millions)
Adjusted cash
flow from operations:
Cash provided by operating activities
$
696.0
$
1,163.7
Change in Floor Plan Notes
Payable—Non-Trade, net
(191.1
)
(608.7
)
Change in Floor Plan Notes
Payable—Non-Trade associated with floor plan offset, used vehicle
borrowing base changes adjusted for acquisition and
divestitures
462.4
131.1
Change in Floor Plan Notes Payable—Trade
associated with floor plan offset, acquisitions and divestitures,
net
19.7
(54.0
)
Adjusted cash flow provided by operating
activities
$
987.1
$
632.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230202005180/en/
Investors & Reporters May Contact: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
Asbury Automotive (NYSE:ABG)
Historical Stock Chart
From Feb 2023 to Mar 2023
Asbury Automotive (NYSE:ABG)
Historical Stock Chart
From Mar 2022 to Mar 2023
