- Revenue of $3.6 billion
- Gross profit of $696 million
- SG&A as a percentage of gross profit of 57.9%
- Operating margin of 7.7%
- Net income of $181 million
- EPS of $8.37 per diluted share
- EBITDA, a non-GAAP measure, of $294 million
- Parts & service revenue growth of 3%; same store parts
& service revenue growth of 12%
- All-time record Clicklane sales of over 10,800 vehicles,
increase of 28% over fourth quarter 2022
- Repurchased approximately 110,000 shares for $21 million
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one
of the largest automotive retail and service companies in the U.S.,
reported first quarter 2023 net income of $181 million ($8.37 per
diluted share), a decrease of 24% from $238 million ($10.38 per
diluted share) in the prior year quarter. First quarter 2023
adjusted net income, a non-GAAP measure, decreased 15%
year-over-year to $181 million ($8.37 per diluted share) compared
to adjusted net income of $212 million ($9.27 per diluted share) in
first quarter 2022. During 2022, the Company completed sixteen
divestitures that contributed $683 million in revenue for the year.
Four of the divestitures closed in the first quarter, three in the
second quarter, and nine in the fourth quarter of 2022.
“I am pleased with our performance coming off of a record year,”
said David Hult, Asbury’s President and Chief Executive Officer.
“We were, and will continue to be, opportunistic while navigating
the changing auto market and macro conditions, and we believe our
strong operational model and guest-centric approach will continue
to power our profitability.”
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 non-GAAP adjustments to net income for the first
quarter 2023.
Adjusted net income for first quarter 2022 excludes gains, net
of tax, of $25.5 million ($1.11 per diluted share) related to a
$33.1 million ($1.08 per diluted share) gain on the sale of four
dealerships and a $0.9 million ($0.03 per diluted share) real
estate sale-leaseback gain.
First Quarter 2023 Operational
Summary
Total Company vs. 1st Quarter 2022:
- Revenue of $3.6 billion, decrease of 8%
- Gross profit decreased 12%
- Gross margin decreased 81 bps to 19.4%
- New vehicle unit volume decreased 12%; new vehicle revenue
decreased 5%; new vehicle gross profit decreased 20%
- Used vehicle retail unit volume decreased 14%; used vehicle
retail revenue decreased 16%; used vehicle retail gross profit
decreased 26%
- Finance and insurance (F&I) per vehicle retailed (PVR)
decreased 6%
- Parts and service revenue increased 3%; gross profit increased
2%
- SG&A as a percentage of gross profit and adjusted SG&A
as a percentage of gross profit both increased to 57.9%, an
increase of 37 bps
- Operating income and adjusted operating income both decreased
14%
- Operating margin decreased 48 bps to 7.7% and adjusted
operating margin decreased 46 bps to 7.7%
Same Store vs. 1st Quarter 2022:
- Revenue decreased 1%
- Gross profit decreased 5%
- Gross margin decreased 87 bps to 19.5%
- New vehicle unit volume decreased 4%; new vehicle revenue
increased 3%; new vehicle gross profit decreased 14%
- Used vehicle retail unit volume decreased 6%; used vehicle
retail revenue decreased 9%; used vehicle retail gross profit
decreased 20%
- F&I PVR decreased 8%
- Parts and service revenue increased 12%; gross profit increased
11%; customer pay gross profit increased 13%
- SG&A as a percentage of gross profit and adjusted SG&A
as a percentage of gross profit both increased to 57.8%, an
increase of 12 bps
Clicklane Metrics:
- Over 10,800 vehicles sold, an all-time record, and an increase
of 28% over fourth quarter 2022
- Total front-end PVR of $3,601 and F&I PVR of $2,275,
resulting in total front-end yield of $5,876
- Conversion rate more than double that of traditional internet
leads and growing sequentially
- Average transaction time of ~8 minutes for cash deals and ~14
minutes for financed deals
- Overall financing approval rate of 89%, of which 90% were
instant and remainder required offline assistance
- 72% were lender-financed sales; 28% were cash sales
- 51 lenders and financial institutions enabled in our Loan
Marketplace
- Average delivery within an 18.1 mile radius of the
dealership
- Average customer Google review of 4.8/5 stars
Liquidity and Leverage
As of March 31, 2023, the Company had cash and floorplan offset
accounts of $1.1 billion (which excludes $21 million of cash at
TCA) and availability under the used vehicle floorplan line and
revolver of $672 million for a total of approximately $1.7 billion
in liquidity. The Company’s adjusted net leverage ratio was 1.6x at
quarter end, compared to 1.7x at the end of 2022.
Share Repurchases
The Company repurchased approximately 110,000 shares for $21
million during the first quarter 2023. From April 1 through April
24, 2023, the Company repurchased approximately 32,000 shares for
$6 million pursuant to a 10b5-1 agreement.
As of April 24, 2023, the Company had $184 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 first quarter results will
be provided during the earnings conference call on Tuesday, April
25, 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:
13737927
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. As of March
31, 2023, Asbury operated 139 new vehicle dealerships, consisting
of 184 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, and 32 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.
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 and business strategy.
These statements are based on management's current expectations
and beliefs and involve significant risks and uncertainties that
may cause results to differ materially from those set forth in the
statements. These risks and uncertainties include, among other
things, our inability to realize the benefits expected from
recently completed transactions; our inability to promptly and
effectively integrate completed transactions and the diversion of
management’s attention from ongoing business and regular business
responsibilities; our inability to complete future acquisitions or
divestitures and the risks resulting therefrom; any 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
March 31,
% Change
2023
2022
REVENUE:
New vehicle
$
1,767.7
$
1,855.6
(5
)%
Used vehicle:
Retail
1,021.6
1,217.0
(16
)%
Wholesale
104.9
134.0
(22
)%
Total used vehicle
1,126.5
1,350.9
(17
)%
Parts and service
515.6
501.9
3
%
Finance and insurance, net
172.5
203.4
(15
)%
TOTAL REVENUE
3,582.3
3,911.8
(8
)%
COST OF SALES:
New vehicle
1,588.8
1,631.6
(3
)%
Used vehicle:
Retail
951.0
1,121.1
(15
)%
Wholesale
98.5
130.5
(24
)%
Total used vehicle
1,049.5
1,251.6
(16
)%
Parts and service
233.5
225.4
4
%
Finance and insurance
14.3
11.2
28
%
TOTAL COST OF SALES
2,886.1
3,119.8
(7
)%
GROSS PROFIT
696.2
792.0
(12
)%
OPERATING EXPENSES:
Selling, general, and administrative
403.0
455.5
(12
)%
Depreciation and amortization
16.7
18.4
(9
)%
Other operating income, net
—
(2.7
)
NM
INCOME FROM OPERATIONS
276.5
320.8
(14
)%
OTHER EXPENSES:
Floor plan interest expense
0.6
2.6
(75
)%
Other interest expense, net
37.3
37.6
(1
)%
Gain on dealership divestitures, net
—
(33.1
)
NM
Total other expenses, net
38.0
7.1
NM
INCOME BEFORE INCOME TAXES
238.5
313.7
(24
)%
Income tax expense
57.1
76.0
(25
)%
NET INCOME
$
181.4
$
237.7
(24
)%
EARNINGS PER SHARE:
Basic—
Net income
$
8.42
$
10.43
(19
)%
Diluted—
Net income
$
8.37
$
10.38
(19
)%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic
21.6
22.8
Performance share units
0.1
0.1
Diluted
21.7
22.9
______________________ NM—Not
Meaningful
ASBURY AUTOMOTIVE GROUP, INC. Additional
Disclosures-Consolidated (In millions) (Unaudited)
March 31, 2023
December 31, 2022
Increase
(Decrease)
% Change
SELECTED BALANCE SHEET DATA
Cash and cash equivalents
$
296.8
$
235.3
$
61.5
26
%
Inventory, net (a)
1,081.4
959.2
122.2
13
%
Total current assets
2,050.2
1,909.8
140.4
7
%
Floor plan notes payable (b)
45.6
51.0
(5.4
)
(11
)%
Total current liabilities
1,068.3
1,033.4
34.9
3
%
CAPITALIZATION:
Long-term debt (including current portion)
(c)
$
3,277.9
$
3,301.2
$
(23.3
)
(1
)%
Shareholders' equity
3,049.2
2,903.5
145.8
5
%
Total
$
6,327.1
$
6,204.7
$
122.4
2
%
______________________ (a) Excluding $5.0
million and $3.4 million of inventory classified as assets held for
sale as of March 31, 2023 and December 31, 2022, respectively
(b) Excluding $4.2 million and $2.8
million of floor plan notes payable classified as liabilities
associated with assets held for sale as of March 31, 2023 and
December 31, 2022, respectively
(c) Excluding $15.8 million and $6.8
million of debt classified as liabilities associated with assets
held for sale as of March 31, 2023 and December 31, 2022,
respectively
March 31,
2023 (a)
December 31,
2022 (b)
March 31,
2022 (b)
Days Supply
New vehicle inventory
30
26
10
Used vehicle inventory
27
27
28
______________________ (a) 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.
(b) Days supply of inventory is calculated
based on new and used inventory, in dollars, 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
March 31,
2023
2022
Luxury
Lexus
10
%
10
%
Mercedes-Benz
9
%
7
%
BMW
3
%
3
%
Porsche
2
%
1
%
Acura
2
%
2
%
Land Rover
2
%
1
%
Other luxury
6
%
4
%
Total luxury
34
%
29
%
Imports
Toyota
15
%
18
%
Honda
9
%
10
%
Hyundai
5
%
5
%
Nissan
4
%
4
%
Kia
2
%
1
%
Subaru
2
%
2
%
Other imports
2
%
2
%
Total imports
38
%
41
%
Domestic
Chrysler, Dodge, Jeep, Ram
13
%
17
%
Ford
10
%
8
%
Chevrolet, Buick, GMC
5
%
4
%
Total domestic
28
%
29
%
Total New Vehicle Revenue
100
%
100
%
For the Three Months Ended
March 31,
2023
2022
Revenue mix
New vehicle
49.3
%
47.4
%
Used vehicle retail
28.5
%
31.1
%
Used vehicle wholesale
2.9
%
3.4
%
Parts and service
14.4
%
12.8
%
Finance and insurance, net
4.8
%
5.2
%
Total revenue
100.0
%
100.0
%
Gross profit mix
New vehicle
25.7
%
28.3
%
Used vehicle retail
10.1
%
12.1
%
Used vehicle wholesale
0.9
%
0.4
%
Parts and service
40.5
%
34.9
%
Finance and insurance, net
22.7
%
24.3
%
Total gross profit
100.0
%
100.0
%
ASBURY AUTOMOTIVE GROUP, INC. OPERATING
HIGHLIGHTS-CONSOLIDATED (In millions) (Unaudited)
For the Three Months Ended
March 31,
% Change
2023
2022
Revenue
New vehicle
$
1,767.7
$
1,855.6
(5
)%
Used vehicle:
Retail
1,021.6
1,217.0
(16
)%
Wholesale
104.9
134.0
(22
)%
Total used vehicle
1,126.5
1,350.9
(17
)%
Parts and service
515.6
501.9
3
%
Finance and insurance, net
172.5
203.4
(15
)%
Total revenue
$
3,582.3
$
3,911.8
(8
)%
Gross
profit
New vehicle
$
178.9
$
224.0
(20
)%
Used vehicle:
Retail
70.6
95.8
(26
)%
Wholesale
6.4
3.5
84
%
Total used vehicle
77.0
99.3
(22
)%
Parts and service
282.1
276.4
2
%
Finance and insurance, net
158.2
192.3
(18
)%
Total gross profit
$
696.2
$
792.0
(12
)%
Unit
sales
New vehicle:
Luxury
8,429
8,257
2
%
Import
17,389
20,678
(16
)%
Domestic
8,688
10,239
(15
)%
Total new vehicle
34,506
39,174
(12
)%
Used vehicle retail
32,989
38,306
(14
)%
Used to new ratio
95.6
%
97.8
%
Average selling
price
New vehicle
$
51,228
$
47,367
8
%
Used vehicle retail
$
30,969
$
31,770
(3
)%
Average gross
profit per unit
New vehicle:
Luxury
$
8,588
$
8,580
—
%
Import
3,682
4,614
(20
)%
Domestic
4,888
5,637
(13
)%
Total new vehicle
5,184
5,717
(9
)%
Used vehicle retail
2,141
2,502
(14
)%
Finance and insurance
2,344
2,482
(6
)%
Front end yield (1)
6,041
6,609
(9
)%
Gross
margin
Total new vehicle
10.1
%
12.1
%
(195) bps
Used vehicle retail
6.9
%
7.9
%
(96) bps
Parts and service
54.7
%
55.1
%
(36) bps
Total gross profit margin
19.4
%
20.2
%
(81) bps
Operating
expenses
Selling, general, and administrative
$
403.0
$
455.5
(12
)%
Adjusted selling, general, and
administrative
$
403.0
$
455.5
(12
)%
SG&A as a % of gross profit
57.9
%
57.5
%
37 bps
Adjusted SG&A as a % of gross
profit
57.9
%
57.5
%
37 bps
Income from operations as a % of
revenue
7.7
%
8.2
%
(48) bps
Income from operations as a % of gross
profit
39.7
%
40.5
%
(80) bps
Adjusted income from operations as a % of
revenue
7.7
%
8.2
%
(46) bps
Adjusted income from operations as a % of
gross profit
39.7
%
40.4
%
(68) 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
March 31,
% Change
2023
2022
Revenue
New vehicle
$
1,767.7
$
1,709.4
3
%
Used vehicle:
Retail
1,020.3
1,122.0
(9
)%
Wholesale
104.7
124.8
(16
)%
Total used vehicle
1,125.0
1,246.8
(10
)%
Parts and service
515.5
461.4
12
%
Finance and insurance, net
172.9
192.1
(10
)%
Total revenue
$
3,581.0
$
3,609.6
(1
)%
Gross
profit
New vehicle
$
178.9
$
207.5
(14
)%
Used vehicle:
Retail
70.7
88.6
(20
)%
Wholesale
6.5
3.3
96
%
Total used vehicle
77.1
91.9
(16
)%
Parts and service
282.0
254.1
11
%
Finance and insurance, net
158.6
180.0
(12
)%
Total gross profit
$
696.7
$
733.5
(5
)%
Unit
sales
New vehicle:
Luxury
8,429
7,741
9
%
Import
17,389
18,169
(4
)%
Domestic
8,688
9,868
(12
)%
Total new vehicle
34,506
35,778
(4
)%
Used vehicle retail
32,928
34,991
(6
)%
Used to new ratio
95.4
%
97.8
%
Average selling
price
New vehicle
$
51,228
$
47,777
7
%
Used vehicle retail
$
30,987
$
32,065
(3
)%
Average gross
profit per unit
New vehicle:
Luxury
$
8,588
$
8,731
(2
)%
Import
3,682
4,626
(20
)%
Domestic
4,888
5,664
(14
)%
Total new vehicle
5,184
5,800
(11
)%
Used vehicle retail
2,146
2,531
(15
)%
Finance and insurance
2,352
2,544
(8
)%
Front end yield (1)
6,053
6,728
(10
)%
Gross
margin
Total new vehicle
10.1
%
12.1
%
(202) bps
Used vehicle retail
6.9
%
7.9
%
(97) bps
Parts and service
54.7
%
55.1
%
(36) bps
Total gross profit margin
19.5
%
20.3
%
(87) bps
Operating
expenses
Selling, general, and administrative
$
402.4
$
422.8
(5
)%
Adjusted selling, general, and
administrative
$
402.4
$
422.8
(5
)%
SG&A as a % of gross profit
57.8
%
57.6
%
12 bps
Adjusted SG&A as a % of gross
profit
57.8
%
57.6
%
12 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 March 31,
2023
Three Months Ended March 31,
2022
Dealerships
TCA After
Eliminations
Total
Company
Dealerships
TCA After
Eliminations
Total
Company
(In millions)
Revenue
New
$
1,767.7
$
—
$
1,767.7
$
1,855.6
$
—
$
1,855.6
Used
1,126.5
—
1,126.5
1,350.9
—
1,350.9
Parts and service
524.5
(9.0
)
515.6
509.8
(7.9
)
501.9
Finance and insurance, net
137.6
35.0
172.5
177.9
25.6
203.4
Total revenue
$
3,556.3
$
26.0
$
3,582.3
$
3,894.2
$
17.6
$
3,911.8
Cost of sales
New
$
1,588.8
$
—
$
1,588.8
$
1,631.6
$
—
$
1,631.6
Used
1,049.5
—
1,049.5
1,251.6
—
1,251.6
Parts and service
238.4
(4.9
)
233.5
229.6
(4.1
)
225.4
Finance and insurance
—
14.3
14.3
—
11.2
11.2
Total cost of sales
$
2,876.7
$
9.4
$
2,886.1
$
3,112.8
$
7.0
$
3,119.8
Gross profit
New
$
178.9
$
—
$
178.9
$
224.0
$
—
$
224.0
Used
77.0
—
77.0
99.3
—
99.3
Parts and service
286.2
(4.1
)
282.1
280.3
(3.8
)
276.4
Finance and insurance, net
137.6
20.7
158.2
177.9
14.4
192.3
Total gross profit
$
679.6
$
16.6
$
696.2
$
781.4
$
10.6
$
792.0
Selling, general, and
administrative
$
406.9
$
(3.9
)
$
403.0
$
462.1
$
(6.6
)
$
455.5
Income from operations
$
256.1
$
20.3
$
276.5
$
304.9
$
15.9
$
320.8
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
March 31,
2023
March 31,
2022
March 31,
2023
December 31,
2022
(Dollars in millions)
Adjusted leverage
ratio:
Long-term debt (including current portion
and held for sale)
$
3,293.7
$
3,308.0
Cash and floor plan offset
(1,072.0
)
(926.3
)
TCA cash
21.3
53.7
Availability under our used vehicle floor
plan facility
(234.8
)
(230.6
)
Adjusted long-term net debt
$
2,008.2
$
2,204.9
Calculation of earnings before interest,
taxes, depreciation and amortization ("EBITDA"):
Net income
$
181.4
$
237.7
$
941.0
$
997.3
Depreciation and amortization
16.7
18.4
67.4
69.0
Income tax expense
57.1
76.0
302.9
321.8
Swap and other interest expense
38.4
37.6
153.7
152.9
Earnings before interest, taxes,
depreciation and amortization ("EBITDA")
$
293.7
$
369.7
$
1,465.0
$
1,541.0
Non-core items - expense (income):
Gain on dealership divestitures, net
$
—
$
(33.1
)
$
(174.1
)
$
(207.1
)
Gain on sale of real estate
—
(0.9
)
—
(0.9
)
Deal diligence cost
—
—
2.7
2.7
Total non-core items
—
(34.0
)
(171.4
)
(205.4
)
Adjusted EBITDA
$
293.7
$
335.7
$
1,293.6
$
1,335.7
Pro forma impact of acquisition and
divestitures on EBITDA
$
(31.6
)
$
(56.7
)
Pro forma adjusted EBITDA
$
1,262.0
$
1,278.9
Pro forma adjusted net leverage ratio
1.6
1.7
Three Months Ended March 31,
2023
GAAP
Gain on
divestitures, net
Real estate
related gain
Income tax
effect
Non-GAAP
adjusted
(In millions, except per share
data)
Selling, general, and administrative
$
403.0
$
—
$
—
$
—
$
403.0
Income from operations
$
276.5
$
—
$
—
$
—
$
276.5
Net income
$
181.4
$
—
$
—
$
—
$
181.4
Weighted average common share outstanding
- diluted
21.7
21.7
Diluted EPS
$
8.37
$
—
$
—
$
—
$
8.37
SG&A as a % of gross profit
57.9
%
—
%
—
%
—
%
57.9
%
Income from operations as a % of
revenue
7.7
%
—
%
—
%
—
%
7.7
%
Three Months Ended March 31,
2022
GAAP
Gain on
divestitures, net
Real estate
related gain
Income tax
effect
Non-GAAP
adjusted
(In millions, except per share
data)
Selling, general, and administrative
$
455.5
$
—
$
—
$
—
$
455.5
Income from operations
$
320.8
$
—
$
(0.9
)
$
—
$
319.9
Net income
$
237.7
$
(33.1
)
$
(0.9
)
$
8.5
$
212.2
Weighted average common share outstanding
- diluted
22.9
22.9
Diluted EPS
$
10.38
$
(1.44
)
$
(0.04
)
$
0.37
$
9.27
SG&A as a % of gross profit
57.5
%
—
%
—
%
—
%
57.5
%
Income from operations as a % of
revenue
8.2
%
—
%
—
%
—
%
8.2
%
For the Three Months
Ended March 31,
2023
2022
(In millions)
Adjusted cash
flow from operations:
Cash provided by operating activities
$
171.7
$
409.0
Change in Floor Plan Notes
Payable—Non-Trade, net
1.4
63.6
Change in Floor Plan Notes
Payable—Non-Trade associated with floor plan offset, used vehicle
borrowing base changes adjusted for acquisition and
divestitures
70.7
(69.6
)
Change in Floor Plan Notes Payable—Trade
associated with floor plan offset, adjusted for acquisition and
divestitures
0.1
2.5
Adjusted cash flow provided by operating
activities
$
243.9
$
405.5
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230425005278/en/
Investors & Reporters May Contact: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
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