- Revenue of $3.8 billion
- Completed acquisition of Jim Koons Automotive Companies, the
ninth-largest privately-owned dealership group in the U.S., with
over $3 billion in annual revenue
- Gross profit of $673 million
- SG&A as a percentage of gross profit of 61.5%; adjusted
SG&A as a percentage of gross profit, a non-GAAP measure, of
61.0%
- Fourth quarter non-cash asset impairments of $117.2 million or
$4.29 per diluted share
- Operating margin of 3.3%; adjusted operating margin, a non-GAAP
measure, of 6.4%
- Net income of $56 million; adjusted net income, a non-GAAP
measure, of $146 million
- EPS of $2.70 per diluted share; adjusted EPS, a non-GAAP
measure, of $7.12 per diluted share
- Adjusted EBITDA, a non-GAAP measure, of $255 million
- Repurchased 246,000 shares for $47 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 2023 net income of $56 million ($2.70 per
diluted share), a decrease of 89% from $353 million ($15.95 per
diluted share) in fourth quarter 2022. Fourth quarter 2023 results
include non-cash asset impairments of $117.2 million or $4.29 per
diluted share. Fourth quarter 2022 results include gains on
dealership divestitures of $203 million or $6.92 per diluted share.
Fourth quarter 2023 adjusted net income, a non-GAAP measure,
decreased 28% year-over-year to $146 million ($7.12 per diluted
share) compared to adjusted net income of $202 million ($9.12 per
diluted share) in fourth 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.
“2023 was a year of building for the future, including continued
integration of acquired businesses, rolling out TCA to 72% of our
stores and closing the largest industry acquisition of 2023 in
December. None of this would have been possible without the hard
work and dedication of our 15,000 team members, including the 2,300
exceptional team members who are now a part of the Asbury family
following our recent acquisition of Koons Automotive,” said David
Hult, Asbury’s President and Chief Executive Officer. “Our efforts
in the 4th quarter and throughout the year better position us for
future profitable growth and we continue to drive value for our
shareholders. Our quarterly results reflect the industry trends
toward normalcy within operations and the headwinds impacting our
parts and services business from ongoing integration activities;
headwinds we indicated would carry through year-end in our prior
quarter commentary.
“With Koons, we have reached a major milestone in our journey to
grow the scale and size of our business. Together, we look forward
to leveraging our investments in technology to drive our continued
focus on operational efficiency and the most guest centric
experience in automotive retailing.”
The financial measures discussed below include both GAAP and
adjusted (non-GAAP) financial measures. Please see “Non-GAAP
Financial Disclosure and Reconciliation, Same Store Data and Other
Data” and the reconciliations for non-GAAP metrics used herein.
Adjusted net income for fourth quarter 2023 excludes, net of
tax, $88.1 million ($4.29 per diluted share) of non-cash asset
impairments, $0.9 million ($0.04 per diluted share) of non-cash
fixed asset write-offs, and $1.8 million ($0.09 per diluted share)
of professional fees related to the acquisition of the Jim Koons
Automotive Companies.
Adjusted net income for the fourth quarter 2022 excludes, net of
tax, expenses related to a significant acquisition that did not
materialize of $2 million ($0.09 per diluted share) and gains on
dealership divestitures, net, primarily related to the Crown North
Carolina stores, of $153 million ($6.92 per diluted share).
Fourth Quarter 2023 Operational
Summary
Total Company vs. 4th Quarter 2022:
- Revenue of $3.8 billion, increase of 3%
- Gross profit of $673 million, decrease of 9%
- Gross margin decreased 226 bps to 17.7%
- New vehicle unit volume increase of 8%; new vehicle revenue
increase of 11%; new vehicle gross profit decrease of 14%
- Used vehicle retail unit volume decrease of 11%; used vehicle
retail revenue decrease of 11%; used vehicle retail gross profit
decrease of 21%
- Finance and insurance (F&I) per vehicle retailed (PVR) of
$2,304, decrease of 11%
- Parts and service revenue decrease of 1%; gross profit decrease
of 1%
- SG&A as a percentage of gross profit increased 442 bps to
61.5%
- Adjusted SG&A as a percentage of gross profit increased 426
bps to 61.0%
- Operating margin decreased 490 bps to 3.3%
- Adjusted operating margin decreased 180 bps to 6.4%
Same Store vs. 4th Quarter 2022:
- Revenue of $3.6 billion, increase of 2%
- Gross profit of $645 million, decrease of 10%
- Gross margin decreased 230 bps to 17.7%
- New vehicle unit volume increase of 7%; new vehicle revenue
increase of 10%; new vehicle gross profit decrease of 16%
- Used vehicle retail unit volume decrease of 10%; used vehicle
retail revenue decrease of 12%; used vehicle retail gross profit
decrease of 24%
- F&I PVR of $2,295, decrease of 12%
- Parts and service revenue flat to prior year quarter; gross
profit flat to prior year
- Adjusted SG&A as a percentage of gross profit increased 477
bps to 61.2%
Full Year 2023 Results
For the full year 2023, the Company reported net income of $603
million ($28.74 per diluted share) compared to $997 million ($44.61
per diluted share) in the prior year, a 36% decrease in EPS.
Adjusted net income (a non-GAAP measure) for 2023 was $684 million
($32.60 per diluted share) compared to $842 million ($37.66 per
diluted share) in the prior year, a 13% decrease in adjusted
EPS.
Total revenue for the full year 2023 was $14.8 billion, a
decrease of 4%; total revenue on a same-store basis was flat to
prior year. Total adjusted EBITDA for the full year 2023 was $1.1
billion, a decrease of 15% from the prior year. Adjusted operating
cash flow for the full year was $705 million, a decrease of $282
million from the prior year.
Liquidity and Leverage
As of December 31, 2023, the Company had cash and floorplan
offset accounts of $128 million (which excludes $13 million of cash
at Total Care Auto, Powered by Landcar) and availability under the
revolver of $332 million for a total of $460 million in liquidity.
The Company’s adjusted net leverage ratio, which is calculated as
set forth in our credit facility, was 2.5x at quarter end.
Share Repurchases
The Company repurchased approximately 246,000 shares for $47
million during the fourth quarter 2023. For the full year 2023, the
Company repurchased 1.3 million shares for $258 million. As of
December 31, 2023, the Company had $203 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 8, 2024, at 10:00 a.m. ET.
The conference call will be simulcast live on the internet. The
webcast, together with supplemental materials, and can be accessed
by logging onto https://investors.asburyauto.com. A replay and the
accompanying materials will be available on this site for at least
30 days.
In addition, live audio will be accessible to the public.
Participants may enter the conference call five to ten minutes
prior to the scheduled start of the call by dialing:
Domestic:
(877) 407-2988
International:
+1 (201) 389-0923
Passcode:
13743881
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 operations, acquisitive growth and innovative technologies,
with its guest-centric approach as Asbury’s constant North Star. As
of December 31, 2023, Asbury operated 158 new vehicle dealerships,
consisting of 208 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 37 collision repair centers.
Asbury offers an extensive range of automotive products and
services, including new and used vehicles; parts and service, which
includes vehicle repair and maintenance services, replacement parts
and collision repair services; and finance and insurance products,
including arranging vehicle financing through third parties and
aftermarket products, such as extended service contracts,
guaranteed asset protection debt cancellation, and prepaid
maintenance. Asbury ranks 18th in the 2023 Forbes list of America’s
Best Mid-Sized Companies. Asbury is recognized as one of America’s
Greatest Workplaces 2023 by Newsweek as well as one of the Best
Companies to Work For in the Retailers industry by U.S. News &
World Report.
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, the timing and amount of any stock repurchases,
and dealership portfolio, revenue enhancement strategies,
operational improvements, projections regarding the expected
benefits of Clicklane, management’s plans, projections and
objectives for future operations, scale and performance,
integration plans and expected synergies from acquisitions, capital
allocation strategy, business strategy. These statements are based
on management's current expectations and beliefs and involve
significant risks and uncertainties that may cause results to
differ materially from those set forth in the statements. These
risks and uncertainties include, among other things, 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 ongoing impact from the COVID-19
pandemic on supply chain disruptions impacting our industry and
business, market factors, Asbury's relationships with, and the
financial and operational stability of, vehicle manufacturers and
other suppliers, acts of God, 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 SG&A, "
"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
2023
2022
2023
2022
REVENUE:
New vehicle
$
2,058.5
$
1,846.3
11
%
$
7,630.7
$
7,365.6
4
%
Used vehicle:
Retail
965.8
1,089.3
(11
)%
4,017.5
4,828.8
(17
)%
Wholesale
102.9
63.7
62
%
396.7
368.3
8
%
Total used vehicle
1,068.7
1,153.0
(7
)%
4,414.3
5,197.1
(15
)%
Parts and service
513.4
516.1
(1
)%
2,081.5
2,074.2
—
%
Finance and insurance, net
171.2
190.6
(10
)%
676.2
797.0
(15
)%
TOTAL REVENUE
3,811.7
3,705.9
3
%
14,802.7
15,433.8
(4
)%
COST OF SALES:
New vehicle
1,887.6
1,647.9
15
%
6,927.8
6,521.6
6
%
Used vehicle:
Retail
913.5
1,022.8
(11
)%
3,769.0
4,481.7
(16
)%
Wholesale
101.2
62.5
62
%
381.2
362.1
5
%
Total used vehicle
1,014.6
1,085.3
(7
)%
4,150.2
4,843.8
(14
)%
Parts and service
228.1
228.0
—
%
931.0
921.6
1
%
Finance and insurance
8.3
6.7
24
%
37.9
46.3
(18
)%
TOTAL COST OF SALES
3,138.7
2,967.9
6
%
12,046.9
12,333.3
(2
)%
GROSS PROFIT
673.0
738.0
(9
)%
2,755.8
3,100.6
(11
)%
OPERATING EXPENSES:
Selling, general, and administrative
414.0
421.4
(2
)%
1,617.4
1,763.4
(8
)%
Depreciation and amortization
17.2
15.4
12
%
67.7
69.0
(2
)%
Asset impairments
117.2
—
—
%
117.2
—
—
%
Other operating income, net
—
(1.4
)
NM
—
(4.4
)
NM
INCOME FROM OPERATIONS
124.6
302.6
(59
)%
953.5
1,272.6
(25
)%
OTHER EXPENSES:
Floor plan interest expense
8.2
2.4
248
%
9.6
8.4
15
%
Other interest expense, net
40.8
38.5
6
%
156.1
152.2
3
%
Gain on dealership divestitures, net
—
(202.7
)
NM
(13.5
)
(207.1
)
NM
Total other expenses (income), net
48.9
(161.9
)
(130
)%
152.2
(46.5
)
NM
INCOME BEFORE INCOME TAXES
75.6
464.5
(84
)%
801.3
1,319.1
(39
)%
Income tax expense
20.1
111.3
(82
)%
198.8
321.8
(38
)%
NET INCOME
$
55.5
$
353.2
(84
)%
$
602.5
$
997.3
(40
)%
EARNINGS PER SHARE:
Basic—
Net income
$
2.72
$
16.02
(83
)%
$
28.87
$
44.78
(36
)%
Diluted—
Net income
$
2.70
$
15.95
(83
)%
$
28.74
$
44.61
(36
)%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic
20.4
22.0
20.9
22.3
Restricted stock
—
0.1
—
0.1
Performance share units
0.1
—
0.1
—
Diluted
20.5
22.1
21.0
22.4
______________________________
NM—Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures-Consolidated (In
millions)
(Unaudited)
December 31, 2023
December 31, 2022
Increase
(Decrease)
% Change
SELECTED BALANCE SHEET DATA
Cash and cash equivalents
$
45.7
$
235.3
$
(189.6
)
(81
)%
Inventory, net (a)
1,768.3
959.2
809.1
84
%
Total current assets
3,057.1
1,909.8
1,147.3
60
%
Floor plan notes payable (b)
1,785.7
51.0
1,734.7
NM
Total current liabilities
2,875.7
1,033.4
1,842.2
178
%
CAPITALIZATION:
Long-term debt (including current portion)
(c)
$
3,206.2
$
3,301.2
$
(95.1
)
(3
)%
Shareholders' equity
3,244.1
2,903.5
340.7
12
%
Total
$
6,450.3
$
6,204.7
$
245.6
4
%
_____________________________
(a)
Excluding $84.5 million and $3.4
million of inventory classified as assets held for sale as of
December 31, 2023 and December 31, 2022, respectively
(b)
Excluding $2.8 million of floor
plan notes payable classified as liabilities associated with assets
held for sale as of December 31, 2022
(c)
Excluding $6.8 million of debt
classified as liabilities associated with assets held for sale as
of December 31, 2022
December 31, 2023 (a)
September 30, 2023 (a)
December 31, 2022 (b)
Days
Supply
New vehicle inventory
43
36
26
Used vehicle inventory
32
29
27
_____________________________
(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
December 31,
2023
2022
Luxury
Lexus
12
%
7
%
Mercedes-Benz
8
%
9
%
BMW
3
%
4
%
Porsche
2
%
3
%
Land Rover
2
%
2
%
Acura
1
%
2
%
Other luxury
5
%
6
%
Total luxury
34
%
33
%
Imports
Toyota
18
%
17
%
Honda
9
%
9
%
Hyundai
4
%
5
%
Nissan
2
%
4
%
Subaru
2
%
2
%
Kia
1
%
2
%
Other imports
2
%
2
%
Total imports
39
%
40
%
Domestic
Chrysler, Dodge, Jeep, Ram
11
%
12
%
Ford
10
%
9
%
Chevrolet, Buick, GMC
6
%
5
%
Total domestic
27
%
27
%
Total New Vehicle Revenue
100
%
100
%
For the Three Months Ended
December 31,
2023
2022
Revenue
mix
New vehicle
54.0
%
49.8
%
Used vehicle retail
25.3
%
29.4
%
Used vehicle wholesale
2.7
%
1.7
%
Parts and service
13.5
%
13.9
%
Finance and insurance, net
4.5
%
5.1
%
Total revenue
100.0
%
100.0
%
Gross profit
mix
New vehicle
25.4
%
26.9
%
Used vehicle retail
7.8
%
9.0
%
Used vehicle wholesale
0.3
%
0.2
%
Parts and service
42.4
%
39.0
%
Finance and insurance, net
24.2
%
24.9
%
Total gross profit
100.0
%
100.0
%
ASBURY AUTOMOTIVE GROUP, INC.
OPERATING HIGHLIGHTS-CONSOLIDATED (In
millions)
(Unaudited)
For the Three Months Ended
December 31,
% Change
For the Twelve Months Ended
December 31,
% Change
2023
2022
2023
2022
Revenue
New vehicle
$
2,058.5
$
1,846.3
11
%
$
7,630.7
$
7,365.6
4
%
Used vehicle:
Retail
965.8
1,089.3
(11
)%
4,017.5
4,828.8
(17
)%
Wholesale
102.9
63.7
62
%
396.7
368.3
8
%
Total used vehicle
1,068.7
1,153.0
(7
)%
4,414.3
5,197.1
(15
)%
Parts and service
513.4
516.1
(1
)%
2,081.5
2,074.2
—
%
Finance and insurance, net
171.2
190.6
(10
)%
676.2
797.0
(15
)%
Total revenue
$
3,811.7
$
3,705.9
3
%
$
14,802.7
$
15,433.8
(4
)%
Gross
profit
New vehicle
$
170.8
$
198.4
(14
)%
$
703.0
$
844.0
(17
)%
Used vehicle:
Retail
52.3
66.5
(21
)%
248.5
347.1
(28
)%
Wholesale
1.8
1.1
57
%
15.5
6.2
151
%
Total used vehicle
54.0
67.7
(20
)%
264.0
353.2
(25
)%
Parts and service
285.3
288.1
(1
)%
1,150.6
1,152.6
—
%
Finance and insurance, net
162.8
183.9
(11
)%
638.2
750.7
(15
)%
Total gross profit
$
673.0
$
738.0
(9
)%
$
2,755.8
$
3,100.6
(11
)%
Unit
sales
New vehicle:
Luxury
9,697
8,497
14
%
35,300
33,904
4
%
Import
20,725
19,562
6
%
77,740
78,388
(1
)%
Domestic
9,475
8,752
8
%
36,469
38,887
(6
)%
Total new vehicle
39,897
36,811
8
%
149,509
151,179
(1
)%
Used vehicle retail
30,778
34,436
(11
)%
127,507
151,464
(16
)%
Used to new ratio
77.1
%
93.5
%
85.3
%
100.2
%
Average selling
price
New vehicle
$
51,595
$
50,156
3
%
$
51,038
$
48,721
5
%
Used vehicle retail
$
31,378
$
31,633
(1
)%
$
31,508
$
31,881
(1
)%
Average gross
profit per unit
New vehicle:
Luxury
$
7,281
$
8,753
(17
)%
$
7,770
$
8,642
(10
)%
Import
2,966
3,960
(25
)%
3,419
4,320
(21
)%
Domestic
4,090
5,317
(23
)%
4,466
5,460
(18
)%
Total new vehicle
4,282
5,389
(21
)%
4,702
5,583
(16
)%
Used vehicle retail
1,699
1,932
(12
)%
1,949
2,291
(15
)%
Finance and insurance
2,304
2,581
(11
)%
2,304
2,480
(7
)%
Front end yield (1)
5,461
6,299
(13
)%
5,739
6,416
(11
)%
Gross
margin
Total new vehicle
8.3
%
10.7
%
(245) bps
9.2
%
11.5
%
(225) bps
Used vehicle retail
5.4
%
6.1
%
(69) bps
6.2
%
7.2
%
(100) bps
Parts and service
55.6
%
55.8
%
(26) bps
55.3
%
55.6
%
(29) bps
Total gross profit margin
17.7
%
19.9
%
(226) bps
18.6
%
20.1
%
(147) bps
Operating
expenses
Selling, general, and administrative
$
414.0
$
421.4
(2
)%
$
1,617.4
$
1,763.4
(8
)%
Adjusted selling, general, and
administrative
$
410.5
$
418.8
(2
)%
$
1,613.2
$
1,760.7
(8
)%
SG&A as a % of gross profit
61.5
%
57.1
%
442 bps
58.7
%
56.9
%
182 bps
Adjusted SG&A as a % of gross
profit
61.0
%
56.7
%
426 bps
58.5
%
56.8
%
175 bps
Income from operations as a % of
revenue
3.3
%
8.2
%
(490) bps
6.4
%
8.2
%
(180) bps
Income from operations as a % of gross
profit
18.5
%
41.0
%
(2,250) bps
34.6
%
41.0
%
(644) bps
Adjusted income from operations as a % of
revenue
6.4
%
8.2
%
(180) bps
7.3
%
8.3
%
(100) bps
Adjusted income from operations as a % of
gross profit
36.4
%
41.4
%
(492) bps
39.0
%
41.1
%
(210) 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
December 31,
% Change
For the Twelve Months Ended
December 31,
% Change
2023
2022
2023
2022
Revenue
New vehicle
$
1,968.1
$
1,796.1
10
%
$
7,529.5
$
7,028.9
7
%
Used vehicle:
Retail
915.5
1,038.0
(12
)%
3,949.1
4,503.7
(12
)%
Wholesale
97.7
60.7
61
%
389.7
348.9
12
%
Total used vehicle
1,013.2
1,098.7
(8
)%
4,338.8
4,852.6
(11
)%
Parts and service
499.0
498.1
—
%
2,063.2
1,960.5
5
%
Finance and insurance, net
162.8
185.5
(12
)%
667.3
761.7
(12
)%
Total revenue
$
3,643.2
$
3,578.4
2
%
$
14,598.8
$
14,603.8
—
%
Gross
profit
New vehicle
$
162.9
$
193.2
(16
)%
$
693.6
$
807.6
(14
)%
Used vehicle:
Retail
48.6
63.9
(24
)%
243.7
323.7
(25
)%
Wholesale
1.5
1.8
(15
)%
15.3
7.1
117
%
Total used vehicle
50.1
65.7
(24
)%
259.1
330.8
(22
)%
Parts and service
277.5
278.0
—
%
1,140.7
1,087.8
5
%
Finance and insurance, net
154.5
178.8
(14
)%
629.4
715.5
(12
)%
Total gross profit
$
644.9
$
715.7
(10
)%
$
2,722.8
$
2,941.7
(7
)%
Unit
sales
New vehicle:
Luxury
9,542
8,143
17
%
34,947
32,154
9
%
Import
19,881
19,009
5
%
76,896
73,845
4
%
Domestic
8,706
8,597
1
%
35,700
37,699
(5
)%
Total new vehicle
38,129
35,749
7
%
147,543
143,698
3
%
Used vehicle retail
29,165
32,468
(10
)%
125,124
139,446
(10
)%
Used to new ratio
76.5
%
90.8
%
84.8
%
97.0
%
Average selling
price
New vehicle
$
51,618
$
50,242
3
%
$
51,033
$
48,915
4
%
Used vehicle retail
$
31,390
$
31,970
(2
)%
$
31,562
$
32,297
(2
)%
Average gross
profit per unit
New vehicle:
Luxury
$
7,306
$
8,855
(17
)%
$
7,783
$
8,758
(11
)%
Import
2,900
3,965
(27
)%
3,407
4,326
(21
)%
Domestic
4,079
5,323
(23
)%
4,472
5,479
(18
)%
Total new vehicle
4,272
5,406
(21
)%
4,701
5,620
(16
)%
Used vehicle retail
1,666
1,969
(15
)%
1,948
2,321
(16
)%
Finance and insurance
2,295
2,621
(12
)%
2,308
2,527
(9
)%
Front end yield (1)
5,438
6,391
(15
)%
5,746
6,523
(12
)%
Gross
margin
Total new vehicle
8.3
%
10.8
%
(248) bps
9.2
%
11.5
%
(228) bps
Used vehicle retail
5.3
%
6.2
%
(85) bps
6.2
%
7.2
%
(102) bps
Parts and service
55.6
%
55.8
%
(20) bps
55.3
%
55.5
%
(19) bps
Total gross profit margin
17.7
%
20.0
%
(230) bps
18.7
%
20.1
%
(149) bps
Operating
expenses
Selling, general, and administrative
$
396.0
$
406.7
(3
)%
$
1,593.6
$
1,670.9
(5
)%
Adjusted selling, general, and
administrative
$
394.9
$
404.1
(2
)%
$
1,593.6
$
1,668.3
(4
)%
SG&A as a % of gross profit
61.4
%
56.8
%
458 bps
58.5
%
56.8
%
173 bps
Adjusted SG&A as a % of gross
profit
61.2
%
56.5
%
477 bps
58.5
%
56.7
%
182 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, 2023
Three Months Ended December
31, 2022
Dealerships
TCA After Eliminations
Total Company
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
2,058.5
$
—
$
2,058.5
$
1,846.3
$
—
$
1,846.3
Used
1,068.7
—
1,068.7
1,153.0
—
1,153.0
Parts and service
521.6
(8.2
)
513.4
524.7
(8.6
)
516.1
Finance and insurance, net
136.2
35.0
171.2
154.4
36.2
190.6
Total revenue
$
3,785.0
$
26.7
$
3,811.7
$
3,678.4
$
27.5
$
3,705.9
Cost of sales
New
$
1,887.6
$
—
$
1,887.6
$
1,647.9
$
—
$
1,647.9
Used
1,014.6
—
1,014.6
1,085.3
—
1,085.3
Parts and service
232.6
(4.5
)
228.1
233.3
(5.3
)
228.0
Finance and insurance
—
8.3
8.3
—
6.7
6.7
Total cost of sales
$
3,134.9
$
3.9
$
3,138.7
$
2,966.5
$
1.4
$
2,967.9
Gross profit
New
$
170.8
$
—
$
170.8
$
198.4
$
—
$
198.4
Used
54.0
—
54.0
67.7
—
67.7
Parts and service
289.1
(3.7
)
285.3
291.4
(3.3
)
288.1
Finance and insurance, net
136.2
26.6
162.8
154.4
29.4
183.9
Total gross profit
$
650.1
$
22.9
$
673.0
$
711.9
$
26.1
$
738.0
Selling, general and
administrative
$
418.6
$
(4.6
)
$
414.0
$
425.2
$
(3.7
)
$
421.4
Income from operations
$
104.4
$
20.2
$
124.6
$
274.4
$
28.2
$
302.6
Twelve Months Ended December
31, 2023
Twelve Months Ended December
31, 2022
Dealerships
TCA After Eliminations
Total Company
Dealerships
TCA After Eliminations
Total Company
(In millions)
Revenue
New
$
7,630.7
$
—
$
7,630.7
$
7,365.6
$
—
$
7,365.6
Used
4,414.3
—
4,414.3
5,197.1
—
5,197.1
Parts and service
2,116.2
(34.6
)
2,081.5
2,107.5
(33.3
)
2,074.2
Finance and insurance, net
537.8
138.3
676.2
670.9
126.0
797.0
Total revenue
$
14,699.0
$
103.7
$
14,802.7
$
15,341.1
$
92.7
$
15,433.8
Cost of sales
New
$
6,927.8
$
—
$
6,927.8
$
6,521.6
$
—
$
6,521.6
Used
4,150.2
—
4,150.2
4,843.8
—
4,843.8
Parts and service
949.9
(18.9
)
931.0
939.7
(18.1
)
921.6
Finance and insurance
—
37.9
37.9
—
46.3
46.3
Total cost of sales
$
12,027.9
$
19.0
$
12,046.9
$
12,305.1
$
28.1
$
12,333.3
Gross profit
New
$
703.0
$
—
$
703.0
$
844.0
$
—
$
844.0
Used
264.0
—
264.0
353.2
—
353.2
Parts and service
1,166.3
(15.8
)
1,150.6
1,167.8
(15.1
)
1,152.6
Finance and insurance, net
537.8
100.4
638.2
670.9
79.8
750.7
Total gross profit
$
2,671.1
$
84.7
$
2,755.8
$
3,036.0
$
64.6
$
3,100.6
Selling, general, and
administrative
$
1,638.5
$
(21.2
)
$
1,617.4
$
1,786.3
$
(22.9
)
$
1,763.4
Income from operations
$
862.6
$
90.9
$
953.5
$
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, 2023
December 31, 2022
December 31, 2023
September 30, 2023
(Dollars in millions)
Adjusted leverage
ratio:
Long-term debt
$
3,206.2
$
3,222.3
Cash and floor plan offset
(140.9
)
(1,030.3
)
TCA cash
13.2
10.6
Availability under our used vehicle floor
plan facility
—
(226.2
)
Adjusted long-term net debt
$
3,078.5
$
1,976.4
Calculation of earnings before interest,
taxes, depreciation and amortization ("EBITDA"):
Net income
$
55.5
$
353.2
$
602.5
$
900.2
Depreciation and amortization
17.2
15.4
67.7
65.9
Income tax expense
20.1
111.3
198.8
290.0
Swap and other interest expense
41.1
39.1
158.4
156.4
Earnings before interest, taxes,
depreciation and amortization ("EBITDA")
$
133.9
$
519.0
$
1,027.4
$
1,412.5
Non-core items - expense (income):
Gain on dealership divestitures, net
$
—
$
(202.7
)
$
(13.5
)
$
(216.2
)
Gain on sale of real estate
—
—
(3.6
)
(3.6
)
Legal settlement
—
—
(1.9
)
(1.9
)
Franchise rights and goodwill
impairments
117.2
—
117.2
—
Professional fees associated with
acquisition
2.4
—
4.1
1.8
Fixed assets write-off
1.1
—
1.1
—
Hail damage
—
—
4.3
4.3
Deal diligence cost
—
2.7
—
2.7
Total non-core items
120.7
(200.0
)
107.8
(212.9
)
Adjusted EBITDA
$
254.6
$
318.9
$
1,135.2
$
1,199.6
Pro forma impact of acquisition and
divestitures on EBITDA
$
79.2
$
(5.7
)
Pro forma adjusted EBITDA
$
1,214.4
$
1,193.9
Pro forma adjusted net leverage ratio
2.5
1.7
Three Months Ended December
31, 2023
GAAP
Professional fees associated
with acquisition
Fixed asset write-off
Franchise rights and goodwill
impairments
Income tax effect
Non-GAAP adjusted
(In millions, except per share
data)
Selling, general and administrative
$
414.0
$
(2.4
)
$
(1.1
)
$
—
$
—
$
410.5
Income from operations
$
124.6
$
2.4
$
1.1
$
117.2
$
—
$
245.3
Net income
$
55.5
$
2.4
$
1.1
$
117.2
$
(29.9
)
$
146.3
Weighted average common share outstanding
- diluted
20.5
20.5
Diluted EPS
$
2.70
$
0.12
$
0.06
$
5.71
$
(1.46
)
$
7.12
SG&A as a % of gross profit
61.5
%
61.0
%
Income from operations as a % of
revenue
3.3
%
6.4
%
Three Months Ended December
31, 2022
GAAP
Gain on dealership
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
%
Twelve Months Ended December
31, 2023
GAAP
Gain on dealership
divestiture, net
Franchise rights and goodwill
impairments
Legal settlement
Fixed asset write-off
Hail damage
Gain on sale of real
estate
Professional fees associated
with acquisition
Income tax effect
Non- GAAP adjusted
(In millions, except per share
data)
Selling, general, and administrative
$
1,617.4
$
—
$
—
$
1.9
$
(1.1
)
$
(4.3
)
$
3.6
$
(4.1
)
$
—
$
1,613.2
Income from operations
$
953.5
$
—
$
117.2
$
(1.9
)
$
1.1
$
4.3
$
(3.6
)
$
4.1
$
—
$
1,074.9
Net income
$
602.5
$
(13.5
)
$
117.2
$
(1.9
)
$
1.1
$
4.3
$
(3.6
)
$
4.1
$
(26.7
)
$
683.6
Weighted average common share outstanding
- diluted
21.0
21.0
Diluted EPS
$
28.74
$
(0.64
)
$
5.59
$
(0.09
)
$
0.05
$
0.21
$
(0.17
)
$
0.20
$
(1.28
)
$
32.60
SG&A as a % of gross profit
58.7
%
58.5
%
Income from operations as a % of
revenue
6.4
%
7.3
%
Twelve Months Ended December
31, 2022
GAAP
Gain on dealership
divestitures, net
Deal diligence cost
Gain on sale of real
estate
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
%
For the Year Ended December
31,
2023
2022
(In millions)
Adjusted cash
flow from operations:
Cash provided by operating activities
$
313.0
$
696.0
Change in Floor Plan Notes
Payable—Non-Trade, net
1,018.9
(191.1
)
Change in Floor Plan Notes
Payable—Non-Trade associated with floor plan offset, used vehicle
borrowing base changes adjusted for acquisition and
divestitures
(571.3
)
462.4
Change in Floor Plan Notes Payable—Trade
associated with floor plan offset, adjusted for acquisition and
divestitures
(55.3
)
19.7
Adjusted cash flow provided by operating
activities
$
705.4
$
987.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240207188602/en/
Investors & Reporters May Contact: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
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