Tue Oct 24 2023
Asbury Automotive Group Reports Third Quarter 2023 Financial Results
-
Revenue of
$3.7 billion -
Gross profit of
$674 million - SG&A as a percentage of gross profit of 58.2%; adjusted SG&A as a percentage of gross profit, a non-GAAP measure, of 58.4%
- Operating margin of 7.2%; adjusted operating margin, a non-GAAP measure, of 7.2%
-
Net income of
$169 million ; adjusted net income, a non-GAAP measure, of$168 million -
EPS of
$8.19 per diluted share; adjusted EPS, a non-GAAP measure, of$8.12 per diluted share -
Adjusted EBITDA, a non-GAAP measure, of
$280 million - Clicklane sales of over 11,600 vehicles, an all-time record
-
Announced definitive agreement to acquire
Jim Koons Automotive Companies , the ninth-largest privately-owned dealership group in theU.S. , with over$3 billion in annual revenue -
Renewed and upsized existing credit facility from
$2.55 billion to$2.80 billion
“I’m proud of our team members for their hard work toward the longer-term integration of our acquisitions and the support of our strategic growth priorities,” said
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 third quarter 2023 excludes, net of tax, a
There were no adjustments to adjusted net income in the third quarter 2022.
Third Quarter 2023 Operational Summary
-
Revenue of
$3.7 billion , decrease of 5% -
Gross profit of
$674 million , decrease of 12% - Gross margin decreased 149 bps to 18.4%
-
New vehicle unit volume of 36,846, increase of 1%; new vehicle revenue of
$1,862 million , increase of 3%; new vehicle gross profit of$168 million , decrease of 16% -
Used vehicle retail unit volume of 32,117, decrease of 17%; used vehicle retail revenue of
$1,017 million , decrease of 19%; used vehicle retail gross profit of$60 million , decrease of 29% -
Finance and insurance (F&I) per vehicle retailed (PVR) of
$2,204 , decrease of 11% -
Parts and service revenue of
$527 million , decrease of 2%; gross profit of$291 million , decrease of 2% - SG&A as a percentage of gross profit increased 109 bps to 58.2%
- Adjusted SG&A as a percentage of gross profit increased 136 bps to 58.4%
- Operating margin decreased 89 bps to 7.2%
- Adjusted operating margin decreased 94 bps to 7.2%
Same Store vs. 3rd Quarter 2022:
-
Revenue of
$3.7 billion , flat to prior year quarter -
Gross profit of
$674 million , decrease of 8% - Gross margin decreased 152 bps to 18.4%
-
New vehicle unit volume of 36,846, increase of 5%; new vehicle revenue
$1,862 million , increase of 8%; new vehicle gross profit of$168 million , decrease of 13% -
Used vehicle retail unit volume of 32,104, decrease of 11%; used vehicle retail revenue of
$1,016 million , decrease of 13%; used vehicle retail gross profit of$60 million , decrease of 24% -
F&I PVR of
$2,207 , decrease of 12% -
Parts and service revenue of
$526 million , increase of 3%; gross profit of$291 million , increase of 3%; customer pay gross profit of$177 million , increase of 2% - SG&A as a percentage of gross profit increased 109 bps to 58.1%
- Adjusted SG&A as a percentage of gross profit increased 136 bps to 58.4%
Clicklane Metrics:
- 11,661 vehicles sold, an all-time record
- 46% were new vehicles sold; 54% were used retail vehicles sold
-
Total front-end PVR of
$3,018 and F&I PVR of$2,151 , resulting in total front-end yield of$5,168 - Conversion rate more than double that of traditional internet leads and growing sequentially
- Overall financing approval rate of 92%, of which 86% were instant and remainder required offline assistance
- 74% were lender-financed sales; 26% were cash sales
-
51 lenders and financial institutions enabled in our
Loan Marketplace - Average delivery within a 40 mile radius of the dealership
-
Average customer
Google review of 4.9/5 stars
Liquidity and Leverage
As of
Credit Facility Renewal
On
Share Repurchases
The Company did not repurchase shares during the third quarter 2023. Year-to-date 2023, the Company has repurchased 1.1 million shares for
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
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:
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Domestic: |
(877) 407-2988 |
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|
International: |
+1 (201) 389-0923 |
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Passcode: |
13741871 |
About
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
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.
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CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited) |
||||||||||||||||||||
|
|
For the Three Months
|
|
%
|
|
For the Nine Months
|
|
%
|
|||||||||||||
|
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
||||
|
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
New vehicle |
$ |
1,861.9 |
|
$ |
1,799.2 |
|
|
3 |
% |
|
$ |
5,572.2 |
|
|
$ |
5,519.3 |
|
|
1 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Retail |
|
1,016.8 |
|
|
1,249.8 |
|
|
(19 |
)% |
|
|
3,051.8 |
|
|
|
3,739.5 |
|
|
(18 |
)% |
|
Wholesale |
|
94.9 |
|
|
80.9 |
|
|
17 |
% |
|
|
293.8 |
|
|
|
304.6 |
|
|
(4 |
)% |
|
Total used vehicle |
|
1,111.7 |
|
|
1,330.7 |
|
|
(16 |
)% |
|
|
3,345.6 |
|
|
|
4,044.1 |
|
|
(17 |
)% |
|
Parts and service |
|
526.5 |
|
|
536.1 |
|
|
(2 |
)% |
|
|
1,568.2 |
|
|
|
1,558.2 |
|
|
1 |
% |
|
Finance and insurance, net |
|
166.1 |
|
|
200.0 |
|
|
(17 |
)% |
|
|
505.0 |
|
|
|
606.4 |
|
|
(17 |
)% |
|
TOTAL REVENUE |
|
3,666.2 |
|
|
3,865.9 |
|
|
(5 |
)% |
|
|
10,991.0 |
|
|
|
11,727.9 |
|
|
(6 |
)% |
|
COST OF SALES: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
New vehicle |
|
1,693.6 |
|
|
1,598.0 |
|
|
6 |
% |
|
|
5,040.1 |
|
|
|
4,873.7 |
|
|
3 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Retail |
|
957.0 |
|
|
1,165.8 |
|
|
(18 |
)% |
|
|
2,855.5 |
|
|
|
3,459.0 |
|
|
(17 |
)% |
|
Wholesale |
|
92.6 |
|
|
82.8 |
|
|
12 |
% |
|
|
280.1 |
|
|
|
299.6 |
|
|
(7 |
)% |
|
Total used vehicle |
|
1,049.6 |
|
|
1,248.6 |
|
|
(16 |
)% |
|
|
3,135.6 |
|
|
|
3,758.5 |
|
|
(17 |
)% |
|
Parts and service |
|
235.3 |
|
|
238.5 |
|
|
(1 |
)% |
|
|
702.9 |
|
|
|
693.6 |
|
|
1 |
% |
|
Finance and insurance |
|
14.1 |
|
|
13.0 |
|
|
8 |
% |
|
|
29.6 |
|
|
|
39.5 |
|
|
(25 |
)% |
|
TOTAL COST OF SALES |
|
2,992.7 |
|
|
3,098.1 |
|
|
(3 |
)% |
|
|
8,908.2 |
|
|
|
9,365.4 |
|
|
(5 |
)% |
|
GROSS PROFIT |
|
673.5 |
|
|
767.8 |
|
|
(12 |
)% |
|
|
2,082.8 |
|
|
|
2,362.5 |
|
|
(12 |
)% |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Selling, general, and administrative |
|
391.7 |
|
|
438.2 |
|
|
(11 |
)% |
|
|
1,203.3 |
|
|
|
1,341.9 |
|
|
(10 |
)% |
|
Depreciation and amortization |
|
17.0 |
|
|
17.1 |
|
|
— |
% |
|
|
50.5 |
|
|
|
53.6 |
|
|
(6 |
)% |
|
Other operating income, net |
|
— |
|
|
(1.1 |
) |
|
NM |
|
|
— |
|
|
|
(3.0 |
) |
|
NM |
|
|
|
INCOME FROM OPERATIONS |
|
264.7 |
|
|
313.6 |
|
|
(16 |
)% |
|
|
829.0 |
|
|
|
970.0 |
|
|
(15 |
)% |
|
OTHER EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Floor plan interest expense |
|
— |
|
|
1.9 |
|
|
(99 |
)% |
|
|
1.5 |
|
|
|
6.0 |
|
|
(76 |
)% |
|
Other interest expense, net |
|
38.7 |
|
|
38.6 |
|
|
— |
% |
|
|
115.3 |
|
|
|
113.8 |
|
|
1 |
% |
|
Gain on dealership divestitures, net |
|
— |
|
|
— |
|
|
— |
% |
|
|
(13.5 |
) |
|
|
(4.4 |
) |
|
NM |
|
|
Total other expenses, net |
|
38.7 |
|
|
40.5 |
|
|
(4 |
)% |
|
|
103.3 |
|
|
|
115.4 |
|
|
(10 |
)% |
|
INCOME BEFORE INCOME TAXES |
|
226.0 |
|
|
273.1 |
|
|
(17 |
)% |
|
|
725.7 |
|
|
|
854.6 |
|
|
(15 |
)% |
|
Income tax expense |
|
56.8 |
|
|
68.1 |
|
|
(17 |
)% |
|
|
178.7 |
|
|
|
210.5 |
|
|
(15 |
)% |
|
NET INCOME |
$ |
169.2 |
|
$ |
205.0 |
|
|
(17 |
)% |
|
$ |
547.0 |
|
|
$ |
644.1 |
|
|
(15 |
)% |
|
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Basic— |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income |
$ |
8.22 |
|
$ |
9.26 |
|
|
(11 |
)% |
|
$ |
26.02 |
|
|
$ |
28.83 |
|
|
(10 |
)% |
|
Diluted— |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income |
$ |
8.19 |
|
$ |
9.23 |
|
|
(11 |
)% |
|
$ |
25.91 |
|
|
$ |
28.72 |
|
|
(10 |
)% |
|
WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Basic |
|
20.6 |
|
|
22.1 |
|
|
|
|
|
21.0 |
|
|
|
22.3 |
|
|
|
||
|
Restricted stock |
|
0.1 |
|
|
0.1 |
|
|
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
||
|
Diluted |
|
20.7 |
|
|
22.2 |
|
|
|
|
|
21.1 |
|
|
|
22.4 |
|
|
|
||
______________________________
|
NM—Not Meaningful |
|
Additional Disclosures-Consolidated (In millions) (Unaudited) |
||||||||||||
|
|
|
|
|
|
Increase
|
|
% Change |
|||||
|
SELECTED BALANCE SHEET DATA |
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents |
$ |
41.6 |
|
$ |
235.3 |
|
$ |
(193.8 |
) |
|
(82 |
)% |
|
Inventory, net (a) |
|
1,242.1 |
|
|
959.2 |
|
|
282.9 |
|
|
29 |
% |
|
Total current assets |
|
2,054.9 |
|
|
1,909.8 |
|
|
145.1 |
|
|
8 |
% |
|
Floor plan notes payable (b) |
|
58.9 |
|
|
51.0 |
|
|
7.9 |
|
|
15 |
% |
|
Total current liabilities |
|
994.5 |
|
|
1,033.4 |
|
|
(39.0 |
) |
|
(4 |
)% |
|
CAPITALIZATION: |
|
|
|
|
|
|
|
|||||
|
Long-term debt (including current portion) (c) |
$ |
3,222.3 |
|
$ |
3,301.2 |
|
$ |
(78.9 |
) |
|
(2 |
)% |
|
Shareholders' equity |
|
3,248.5 |
|
|
2,903.5 |
|
|
345.1 |
|
|
12 |
% |
|
Total |
$ |
6,470.9 |
|
$ |
6,204.7 |
|
$ |
266.2 |
|
|
4 |
% |
_____________________________
|
(a) Excluding |
|
(b) Excluding |
|
(c) Excluding $6.8 million of debt classified as liabilities associated with assets held for sale as of |
|
|
|
|
|
|
|
|
Days Supply |
|
|
|
|
|
|
New vehicle inventory |
36 |
|
26 |
|
19 |
|
Used vehicle inventory |
29 |
|
27 |
|
31 |
_____________________________
|
(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
|
||||
|
|
2023 |
|
2022 |
||
|
Luxury |
|
|
|
||
|
Lexus |
10 |
% |
|
9 |
% |
|
Mercedes-Benz |
8 |
% |
|
8 |
% |
|
BMW |
3 |
% |
|
4 |
% |
|
Porsche |
2 |
% |
|
2 |
% |
|
Acura |
2 |
% |
|
2 |
% |
|
Land Rover |
2 |
% |
|
1 |
% |
|
Other luxury |
5 |
% |
|
5 |
% |
|
Total luxury |
31 |
% |
|
32 |
% |
|
Imports |
|
|
|
||
|
Toyota |
18 |
% |
|
16 |
% |
|
Honda |
10 |
% |
|
9 |
% |
|
Hyundai |
4 |
% |
|
5 |
% |
|
Nissan |
3 |
% |
|
3 |
% |
|
Kia |
2 |
% |
|
2 |
% |
|
Subaru |
2 |
% |
|
2 |
% |
|
|
1 |
% |
|
2 |
% |
|
Other imports |
1 |
% |
|
1 |
% |
|
Total imports |
41 |
% |
|
39 |
% |
|
Domestic |
|
|
|
||
|
Chrysler, Dodge, |
12 |
% |
|
16 |
% |
|
Ford |
10 |
% |
|
9 |
% |
|
Chevrolet, Buick, GMC |
6 |
% |
|
5 |
% |
|
Total domestic |
28 |
% |
|
30 |
% |
|
Total New Vehicle Revenue |
100 |
% |
|
100 |
% |
|
|
For the Three Months
|
||||
|
|
2023 |
|
2022 |
||
|
Revenue mix |
|
|
|
||
|
New vehicle |
50.8 |
% |
|
46.5 |
% |
|
Used vehicle retail |
27.7 |
% |
|
32.3 |
% |
|
Used vehicle wholesale |
2.6 |
% |
|
2.1 |
% |
|
Parts and service |
14.4 |
% |
|
13.9 |
% |
|
Finance and insurance, net |
4.5 |
% |
|
5.2 |
% |
|
Total revenue |
100.0 |
% |
|
100.0 |
% |
|
Gross profit mix |
|
|
|
||
|
New vehicle |
25.0 |
% |
|
26.2 |
% |
|
Used vehicle retail |
8.9 |
% |
|
10.9 |
% |
|
Used vehicle wholesale |
0.3 |
% |
|
(0.2 |
)% |
|
Parts and service |
43.2 |
% |
|
38.8 |
% |
|
Finance and insurance, net |
22.6 |
% |
|
24.3 |
% |
|
Total gross profit |
100.0 |
% |
|
100.0 |
% |
|
OPERATING HIGHLIGHTS-CONSOLIDATED (In millions) (Unaudited) |
|||||||||||||||||||||
|
|
For the Three Months Ended
|
|
% Change |
|
For the Nine Months Ended
|
|
%
|
||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
1,861.9 |
|
|
$ |
1,799.2 |
|
|
3 |
% |
|
$ |
5,572.2 |
|
|
$ |
5,519.3 |
|
|
1 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
1,016.8 |
|
|
|
1,249.8 |
|
|
(19 |
)% |
|
|
3,051.8 |
|
|
|
3,739.5 |
|
|
(18 |
)% |
|
Wholesale |
|
94.9 |
|
|
|
80.9 |
|
|
17 |
% |
|
|
293.8 |
|
|
|
304.6 |
|
|
(4 |
)% |
|
Total used vehicle |
|
1,111.7 |
|
|
|
1,330.7 |
|
|
(16 |
)% |
|
|
3,345.6 |
|
|
|
4,044.1 |
|
|
(17 |
)% |
|
Parts and service |
|
526.5 |
|
|
|
536.1 |
|
|
(2 |
)% |
|
|
1,568.2 |
|
|
|
1,558.2 |
|
|
1 |
% |
|
Finance and insurance, net |
|
166.1 |
|
|
|
200.0 |
|
|
(17 |
)% |
|
|
505.0 |
|
|
|
606.4 |
|
|
(17 |
)% |
|
Total revenue |
$ |
3,666.2 |
|
|
$ |
3,865.9 |
|
|
(5 |
)% |
|
$ |
10,991.0 |
|
|
$ |
11,727.9 |
|
|
(6 |
)% |
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
168.3 |
|
|
$ |
201.2 |
|
|
(16 |
)% |
|
$ |
532.1 |
|
|
$ |
645.6 |
|
|
(18 |
)% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
59.8 |
|
|
|
84.0 |
|
|
(29 |
)% |
|
|
196.2 |
|
|
|
280.5 |
|
|
(30 |
)% |
|
Wholesale |
|
2.3 |
|
|
|
(1.9 |
) |
|
(224 |
)% |
|
|
13.7 |
|
|
|
5.0 |
|
|
173 |
% |
|
Total used vehicle |
|
62.1 |
|
|
|
82.1 |
|
|
(24 |
)% |
|
|
210.0 |
|
|
|
285.5 |
|
|
(26 |
)% |
|
Parts and service |
|
291.1 |
|
|
|
297.6 |
|
|
(2 |
)% |
|
|
865.3 |
|
|
|
864.5 |
|
|
— |
% |
|
Finance and insurance, net |
|
152.0 |
|
|
|
186.9 |
|
|
(19 |
)% |
|
|
475.4 |
|
|
|
566.8 |
|
|
(16 |
)% |
|
Total gross profit |
$ |
673.5 |
|
|
$ |
767.8 |
|
|
(12 |
)% |
|
$ |
2,082.8 |
|
|
$ |
2,362.5 |
|
|
(12 |
)% |
|
Unit sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Luxury |
|
8,150 |
|
|
|
8,251 |
|
|
(1 |
)% |
|
|
25,504 |
|
|
|
25,407 |
|
|
— |
% |
|
Import |
|
19,659 |
|
|
|
18,584 |
|
|
6 |
% |
|
|
57,015 |
|
|
|
58,826 |
|
|
(3 |
)% |
|
Domestic |
|
9,037 |
|
|
|
9,662 |
|
|
(6 |
)% |
|
|
27,093 |
|
|
|
30,135 |
|
|
(10 |
)% |
|
Total new vehicle |
|
36,846 |
|
|
|
36,497 |
|
|
1 |
% |
|
|
109,612 |
|
|
|
114,368 |
|
|
(4 |
)% |
|
Used vehicle retail |
|
32,117 |
|
|
|
38,874 |
|
|
(17 |
)% |
|
|
96,729 |
|
|
|
117,028 |
|
|
(17 |
)% |
|
Used to new ratio |
|
87.2 |
% |
|
|
106.5 |
% |
|
|
|
|
88.2 |
% |
|
|
102.3 |
% |
|
|
||
|
Average selling price |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
50,531 |
|
|
$ |
49,296 |
|
|
3 |
% |
|
$ |
50,836 |
|
|
$ |
48,259 |
|
|
5 |
% |
|
Used vehicle retail |
$ |
31,660 |
|
|
$ |
32,150 |
|
|
(2 |
)% |
|
$ |
31,550 |
|
|
$ |
31,954 |
|
|
(1 |
)% |
|
Average gross profit per unit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Luxury |
$ |
7,553 |
|
|
$ |
8,651 |
|
|
(13 |
)% |
|
$ |
7,975 |
|
|
$ |
8,606 |
|
|
(7 |
)% |
|
Import |
|
3,458 |
|
|
|
4,192 |
|
|
(18 |
)% |
|
|
3,584 |
|
|
|
4,440 |
|
|
(19 |
)% |
|
Domestic |
|
4,286 |
|
|
|
5,371 |
|
|
(20 |
)% |
|
|
4,592 |
|
|
|
5,501 |
|
|
(17 |
)% |
|
Total new vehicle |
|
4,567 |
|
|
|
5,512 |
|
|
(17 |
)% |
|
|
4,855 |
|
|
|
5,645 |
|
|
(14 |
)% |
|
Used vehicle retail |
|
1,861 |
|
|
|
2,160 |
|
|
(14 |
)% |
|
|
2,029 |
|
|
|
2,397 |
|
|
(15 |
)% |
|
Finance and insurance |
|
2,204 |
|
|
|
2,480 |
|
|
(11 |
)% |
|
|
2,304 |
|
|
|
2,450 |
|
|
(6 |
)% |
|
Front end yield (1) |
|
5,511 |
|
|
|
6,264 |
|
|
(12 |
)% |
|
|
5,834 |
|
|
|
6,452 |
|
|
(10 |
)% |
|
Gross margin |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total new vehicle |
|
9.0 |
% |
|
|
11.2 |
% |
|
(214) bps |
|
|
9.5 |
% |
|
|
11.7 |
% |
|
(215) bps |
||
|
Used vehicle retail |
|
5.9 |
% |
|
|
6.7 |
% |
|
(84) bps |
|
|
6.4 |
% |
|
|
7.5 |
% |
|
(107) bps |
||
|
Parts and service |
|
55.3 |
% |
|
|
55.5 |
% |
|
(21) bps |
|
|
55.2 |
% |
|
|
55.5 |
% |
|
(31) bps |
||
|
Total gross profit margin |
|
18.4 |
% |
|
|
19.9 |
% |
|
(149) bps |
|
|
19.0 |
% |
|
|
20.1 |
% |
|
(119) bps |
||
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general, and administrative |
$ |
391.7 |
|
|
$ |
438.2 |
|
|
(11 |
)% |
|
$ |
1,203.3 |
|
|
$ |
1,341.9 |
|
|
(10 |
)% |
|
Adjusted selling, general, and administrative |
$ |
393.5 |
|
|
$ |
438.2 |
|
|
(10 |
)% |
|
$ |
1,202.7 |
|
|
$ |
1,341.9 |
|
|
(10 |
)% |
|
SG&A as a % of gross profit |
|
58.2 |
% |
|
|
57.1 |
% |
|
109 bps |
|
|
57.8 |
% |
|
|
56.8 |
% |
|
97 bps |
||
|
Adjusted SG&A as a % of gross profit |
|
58.4 |
% |
|
|
57.1 |
% |
|
136 bps |
|
|
57.7 |
% |
|
|
56.8 |
% |
|
94 bps |
||
|
Income from operations as a % of revenue |
|
7.2 |
% |
|
|
8.1 |
% |
|
(89) bps |
|
|
7.5 |
% |
|
|
8.3 |
% |
|
(73) bps |
||
|
Income from operations as a % of gross profit |
|
39.3 |
% |
|
|
40.8 |
% |
|
(154) bps |
|
|
39.8 |
% |
|
|
41.1 |
% |
|
(126) bps |
||
|
Adjusted income from operations as a % of revenue |
|
7.2 |
% |
|
|
8.1 |
% |
|
(94) bps |
|
|
7.5 |
% |
|
|
8.3 |
% |
|
(71) bps |
||
|
Adjusted income from operations as a % of gross profit |
|
39.0 |
% |
|
|
40.8 |
% |
|
(180) bps |
|
|
39.8 |
% |
|
|
41.0 |
% |
|
(119) 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. |
|
SAME STORE OPERATING HIGHLIGHTS-CONSOLIDATED (In millions) (Unaudited) |
|||||||||||||||||||||
|
|
For the Three Months
|
|
%
|
|
For the Nine Months
|
|
%
|
||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
1,861.9 |
|
|
$ |
1,730.9 |
|
|
8 |
% |
|
$ |
5,561.4 |
|
|
$ |
5,232.8 |
|
|
6 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
1,016.4 |
|
|
|
1,171.8 |
|
|
(13 |
)% |
|
|
3,033.6 |
|
|
|
3,465.7 |
|
|
(12 |
)% |
|
Wholesale |
|
94.7 |
|
|
|
78.2 |
|
|
21 |
% |
|
|
292.0 |
|
|
|
288.2 |
|
|
1 |
% |
|
Total used vehicle |
|
1,111.0 |
|
|
|
1,250.1 |
|
|
(11 |
)% |
|
|
3,325.6 |
|
|
|
3,753.8 |
|
|
(11 |
)% |
|
Parts and service |
|
526.3 |
|
|
|
509.5 |
|
|
3 |
% |
|
|
1,564.1 |
|
|
|
1,462.5 |
|
|
7 |
% |
|
Finance and insurance, net |
|
166.3 |
|
|
|
192.1 |
|
|
(13 |
)% |
|
|
504.5 |
|
|
|
576.2 |
|
|
(12 |
)% |
|
Total revenue |
$ |
3,665.5 |
|
|
$ |
3,682.5 |
|
|
— |
% |
|
$ |
10,955.7 |
|
|
$ |
11,025.4 |
|
|
(1 |
)% |
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
168.3 |
|
|
$ |
194.2 |
|
|
(13 |
)% |
|
$ |
530.8 |
|
|
$ |
614.3 |
|
|
(14 |
)% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
59.8 |
|
|
|
79.1 |
|
|
(24 |
)% |
|
|
195.1 |
|
|
|
259.8 |
|
|
(25 |
)% |
|
Wholesale |
|
2.3 |
|
|
|
(1.5 |
) |
|
(255 |
)% |
|
|
13.8 |
|
|
|
5.3 |
|
|
162 |
% |
|
Total used vehicle |
|
62.1 |
|
|
|
77.6 |
|
|
(20 |
)% |
|
|
209.0 |
|
|
|
265.1 |
|
|
(21 |
)% |
|
Parts and service |
|
291.1 |
|
|
|
282.0 |
|
|
3 |
% |
|
|
863.2 |
|
|
|
809.8 |
|
|
7 |
% |
|
Finance and insurance, net |
|
152.2 |
|
|
|
179.0 |
|
|
(15 |
)% |
|
|
474.9 |
|
|
|
536.7 |
|
|
(12 |
)% |
|
Total gross profit |
$ |
673.6 |
|
|
$ |
732.8 |
|
|
(8 |
)% |
|
$ |
2,077.9 |
|
|
$ |
2,225.9 |
|
|
(7 |
)% |
|
Unit sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Luxury |
|
8,150 |
|
|
|
7,865 |
|
|
4 |
% |
|
|
25,306 |
|
|
|
24,011 |
|
|
5 |
% |
|
Import |
|
19,659 |
|
|
|
17,839 |
|
|
10 |
% |
|
|
57,015 |
|
|
|
54,836 |
|
|
4 |
% |
|
Domestic |
|
9,037 |
|
|
|
9,338 |
|
|
(3 |
)% |
|
|
27,093 |
|
|
|
29,102 |
|
|
(7 |
)% |
|
Total new vehicle |
|
36,846 |
|
|
|
35,042 |
|
|
5 |
% |
|
|
109,414 |
|
|
|
107,949 |
|
|
1 |
% |
|
Used vehicle retail |
|
32,104 |
|
|
|
35,968 |
|
|
(11 |
)% |
|
|
95,959 |
|
|
|
106,978 |
|
|
(10 |
)% |
|
Used to new ratio |
|
87.1 |
% |
|
|
102.6 |
% |
|
|
|
|
87.7 |
% |
|
|
99.1 |
% |
|
|
||
|
Average selling price |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
50,531 |
|
|
$ |
49,395 |
|
|
2 |
% |
|
$ |
50,829 |
|
|
$ |
48,475 |
|
|
5 |
% |
|
Used vehicle retail |
$ |
31,659 |
|
|
$ |
32,580 |
|
|
(3 |
)% |
|
$ |
31,614 |
|
|
$ |
32,396 |
|
|
(2 |
)% |
|
Average gross profit per unit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Luxury |
$ |
7,552 |
|
|
$ |
8,763 |
|
|
(14 |
)% |
|
$ |
7,982 |
|
|
$ |
8,726 |
|
|
(9 |
)% |
|
Import |
|
3,458 |
|
|
|
4,203 |
|
|
(18 |
)% |
|
|
3,584 |
|
|
|
4,451 |
|
|
(19 |
)% |
|
Domestic |
|
4,286 |
|
|
|
5,384 |
|
|
(20 |
)% |
|
|
4,592 |
|
|
|
5,523 |
|
|
(17 |
)% |
|
Total new vehicle |
|
4,567 |
|
|
|
5,541 |
|
|
(18 |
)% |
|
|
4,851 |
|
|
|
5,691 |
|
|
(15 |
)% |
|
Used vehicle retail |
|
1,862 |
|
|
|
2,200 |
|
|
(15 |
)% |
|
|
2,034 |
|
|
|
2,428 |
|
|
(16 |
)% |
|
Finance and insurance |
|
2,207 |
|
|
|
2,521 |
|
|
(12 |
)% |
|
|
2,313 |
|
|
|
2,497 |
|
|
(7 |
)% |
|
Front end yield (1) |
|
5,514 |
|
|
|
6,370 |
|
|
(13 |
)% |
|
|
5,847 |
|
|
|
6,564 |
|
|
(11 |
)% |
|
Gross margin |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total new vehicle |
|
9.0 |
% |
|
|
11.2 |
% |
|
(218) bps |
|
|
9.5 |
% |
|
|
11.7 |
% |
|
(220) bps |
||
|
Used vehicle retail |
|
5.9 |
% |
|
|
6.8 |
% |
|
(87) bps |
|
|
6.4 |
% |
|
|
7.5 |
% |
|
(106) bps |
||
|
Parts and service |
|
55.3 |
% |
|
|
55.3 |
% |
|
(4) bps |
|
|
55.2 |
% |
|
|
55.4 |
% |
|
(18) bps |
||
|
Total gross profit margin |
|
18.4 |
% |
|
|
19.9 |
% |
|
(152) bps |
|
|
19.0 |
% |
|
|
20.2 |
% |
|
(122) bps |
||
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general, and administrative |
$ |
391.4 |
|
|
$ |
417.8 |
|
|
(6 |
)% |
|
$ |
1,197.6 |
|
|
$ |
1,264.2 |
|
|
(5 |
)% |
|
Adjusted selling, general, and administrative |
$ |
393.2 |
|
|
$ |
417.8 |
|
|
(6 |
)% |
|
$ |
1,197.0 |
|
|
$ |
1,264.2 |
|
|
(5 |
)% |
|
SG&A as a % of gross profit |
|
58.1 |
% |
|
|
57.0 |
% |
|
109 bps |
|
|
57.6 |
% |
|
|
56.8 |
% |
|
84 bps |
||
|
Adjusted SG&A as a % of gross profit |
|
58.4 |
% |
|
|
57.0 |
% |
|
136 bps |
|
|
57.6 |
% |
|
|
56.8 |
% |
|
81 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. |
|
SEGMENT REPORTING (Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||
|
|
Dealerships |
|
TCA After
|
|
Total
|
|
Dealerships |
|
TCA After
|
|
Total
|
||||||||
|
|
(In millions) |
||||||||||||||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
New |
$ |
1,861.9 |
|
$ |
— |
|
|
$ |
1,861.9 |
|
$ |
1,799.2 |
|
$ |
— |
|
|
$ |
1,799.2 |
|
Used |
|
1,111.7 |
|
|
— |
|
|
|
1,111.7 |
|
|
1,330.7 |
|
|
— |
|
|
|
1,330.7 |
|
Parts and service |
|
535.4 |
|
|
(9.0 |
) |
|
|
526.5 |
|
|
544.8 |
|
|
(8.7 |
) |
|
|
536.1 |
|
Finance and insurance, net |
|
129.9 |
|
|
36.2 |
|
|
|
166.1 |
|
|
163.9 |
|
|
36.1 |
|
|
|
200.0 |
|
Total revenue |
$ |
3,638.9 |
|
$ |
27.3 |
|
|
$ |
3,666.2 |
|
$ |
3,838.5 |
|
$ |
27.4 |
|
|
$ |
3,865.9 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
New |
$ |
1,693.6 |
|
$ |
— |
|
|
$ |
1,693.6 |
|
$ |
1,598.0 |
|
$ |
— |
|
|
$ |
1,598.0 |
|
Used |
|
1,049.6 |
|
|
— |
|
|
|
1,049.6 |
|
|
1,248.6 |
|
|
— |
|
|
|
1,248.6 |
|
Parts and service |
|
240.2 |
|
|
(4.9 |
) |
|
|
235.3 |
|
|
243.0 |
|
|
(4.5 |
) |
|
|
238.5 |
|
Finance and insurance |
|
— |
|
|
14.1 |
|
|
|
14.1 |
|
|
— |
|
|
13.0 |
|
|
|
13.0 |
|
Total cost of sales |
$ |
2,983.4 |
|
$ |
9.2 |
|
|
$ |
2,992.7 |
|
$ |
3,089.6 |
|
$ |
8.5 |
|
|
$ |
3,098.1 |
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
New |
$ |
168.3 |
|
$ |
— |
|
|
$ |
168.3 |
|
$ |
201.2 |
|
$ |
— |
|
|
$ |
201.2 |
|
Used |
|
62.1 |
|
|
— |
|
|
|
62.1 |
|
|
82.1 |
|
|
— |
|
|
|
82.1 |
|
Parts and service |
|
295.2 |
|
|
(4.1 |
) |
|
|
291.1 |
|
|
301.8 |
|
|
(4.2 |
) |
|
|
297.6 |
|
Finance and insurance, net |
|
129.9 |
|
|
22.1 |
|
|
|
152.0 |
|
|
163.9 |
|
|
23.0 |
|
|
|
186.9 |
|
Total gross profit |
$ |
655.5 |
|
$ |
18.0 |
|
|
$ |
673.5 |
|
$ |
749.0 |
|
$ |
18.9 |
|
|
$ |
767.8 |
|
Selling, general and administrative |
$ |
396.4 |
|
$ |
(4.7 |
) |
|
$ |
391.7 |
|
$ |
444.0 |
|
$ |
(5.8 |
) |
|
$ |
438.2 |
|
Income from operations |
$ |
244.9 |
|
$ |
19.8 |
|
|
$ |
264.7 |
|
$ |
291.4 |
|
$ |
22.3 |
|
|
$ |
313.6 |
|
|
Nine Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
Dealerships |
|
TCA After
|
|
Total
|
|
Dealerships |
|
TCA After
|
|
Total
|
||||||||
|
|
(In millions) |
||||||||||||||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
New |
$ |
5,572.2 |
|
$ |
— |
|
|
$ |
5,572.2 |
|
$ |
5,519.3 |
|
$ |
— |
|
|
$ |
5,519.3 |
|
Used |
|
3,345.6 |
|
|
— |
|
|
|
3,345.6 |
|
|
4,044.1 |
|
|
— |
|
|
|
4,044.1 |
|
Parts and service |
|
1,594.6 |
|
|
(26.4 |
) |
|
|
1,568.2 |
|
|
1,582.8 |
|
|
(24.7 |
) |
|
|
1,558.2 |
|
Finance and insurance, net |
|
401.7 |
|
|
103.3 |
|
|
|
505.0 |
|
|
516.5 |
|
|
89.9 |
|
|
|
606.4 |
|
Total revenue |
$ |
10,914.0 |
|
$ |
76.9 |
|
|
$ |
10,991.0 |
|
$ |
11,662.7 |
|
$ |
65.2 |
|
|
$ |
11,727.9 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
New |
$ |
5,040.1 |
|
$ |
— |
|
|
$ |
5,040.1 |
|
$ |
4,873.7 |
|
$ |
— |
|
|
$ |
4,873.7 |
|
Used |
|
3,135.6 |
|
|
— |
|
|
|
3,135.6 |
|
|
3,758.5 |
|
|
— |
|
|
|
3,758.5 |
|
Parts and service |
|
717.3 |
|
|
(14.4 |
) |
|
|
702.9 |
|
|
706.5 |
|
|
(12.8 |
) |
|
|
693.6 |
|
Finance and insurance |
|
— |
|
|
29.6 |
|
|
|
29.6 |
|
|
— |
|
|
39.5 |
|
|
|
39.5 |
|
Total cost of sales |
$ |
8,893.0 |
|
$ |
15.2 |
|
|
$ |
8,908.2 |
|
$ |
9,338.6 |
|
$ |
26.8 |
|
|
$ |
9,365.4 |
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
New |
$ |
532.1 |
|
$ |
— |
|
|
$ |
532.1 |
|
$ |
645.6 |
|
$ |
— |
|
|
$ |
645.6 |
|
Used |
|
210.0 |
|
|
— |
|
|
|
210.0 |
|
|
285.5 |
|
|
— |
|
|
|
285.5 |
|
Parts and service |
|
877.3 |
|
|
(12.0 |
) |
|
|
865.3 |
|
|
876.4 |
|
|
(11.8 |
) |
|
|
864.5 |
|
Finance and insurance, net |
|
401.7 |
|
|
73.8 |
|
|
|
475.4 |
|
|
516.5 |
|
|
50.3 |
|
|
|
566.8 |
|
Total gross profit |
$ |
2,021.0 |
|
$ |
61.8 |
|
|
$ |
2,082.8 |
|
$ |
2,324.1 |
|
$ |
38.4 |
|
|
$ |
2,362.5 |
|
Selling, general, and administrative |
$ |
1,219.9 |
|
$ |
(16.6 |
) |
|
$ |
1,203.3 |
|
$ |
1,361.1 |
|
$ |
(19.2 |
) |
|
$ |
1,341.9 |
|
Income from operations |
$ |
758.3 |
|
$ |
70.7 |
|
|
$ |
829.0 |
|
$ |
918.1 |
|
$ |
51.9 |
|
|
$ |
970.0 |
|
Supplemental Disclosures (Unaudited)
The following tables provide reconciliations for our non-GAAP metrics: |
||||||||||||||
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
(Dollars in millions) |
|||||||||||||
|
Adjusted leverage ratio: |
|
|
|
|
|
|
|
|||||||
|
Long-term debt (including current portion and held for sale) |
|
|
|
|
$ |
3,222.3 |
|
|
$ |
3,247.3 |
|
|||
|
Cash and floor plan offset |
|
|
|
|
|
(1,030.3 |
) |
|
|
(895.8 |
) |
|||
|
TCA cash |
|
|
|
|
|
10.6 |
|
|
|
13.9 |
|
|||
|
Availability under our used vehicle floor plan facility |
|
|
|
|
|
(226.2 |
) |
|
|
(271.0 |
) |
|||
|
Adjusted long-term net debt |
|
|
|
|
$ |
1,976.4 |
|
|
$ |
2,094.4 |
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): |
|
|
|
|
|
|
|
|||||||
|
Net income |
$ |
169.2 |
|
|
$ |
205.0 |
|
$ |
900.2 |
|
|
$ |
935.9 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Depreciation and amortization |
|
17.0 |
|
|
|
17.1 |
|
|
65.9 |
|
|
|
66.0 |
|
|
Income tax expense |
|
56.8 |
|
|
|
68.1 |
|
|
290.0 |
|
|
|
301.4 |
|
|
Swap and other interest expense |
|
38.7 |
|
|
|
38.6 |
|
|
156.4 |
|
|
|
156.3 |
|
|
Earnings before interest, taxes, depreciation and amortization ("EBITDA") |
$ |
281.8 |
|
|
$ |
328.8 |
|
$ |
1,412.5 |
|
|
$ |
1,459.5 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Non-core items - expense (income): |
|
|
|
|
|
|
|
|||||||
|
Gain on dealership divestitures, net |
$ |
— |
|
|
$ |
— |
|
$ |
(216.2 |
) |
|
$ |
(216.2 |
) |
|
Gain on sale of real estate |
|
(3.6 |
) |
|
|
— |
|
|
(3.6 |
) |
|
|
— |
|
|
Legal settlement |
|
— |
|
|
|
— |
|
|
(1.9 |
) |
|
|
(1.9 |
) |
|
Deal diligence cost |
|
— |
|
|
|
— |
|
|
2.7 |
|
|
|
2.7 |
|
|
Hail damage |
|
— |
|
|
|
— |
|
|
4.3 |
|
|
|
4.3 |
|
|
Professional fees associated with acquisition |
|
1.8 |
|
|
|
— |
|
|
1.8 |
|
|
|
— |
|
|
Total non-core items |
|
(1.8 |
) |
|
|
— |
|
|
(212.9 |
) |
|
|
(211.1 |
) |
|
|
|
|
|
|
|
|
|
|||||||
|
Adjusted EBITDA |
$ |
280.0 |
|
|
$ |
328.8 |
|
$ |
1,199.6 |
|
|
$ |
1,248.4 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Pro forma impact of acquisition and divestitures on EBITDA |
|
|
|
|
$ |
(5.7 |
) |
|
$ |
(22.1 |
) |
|||
|
Pro forma adjusted EBITDA |
|
|
|
|
$ |
1,193.9 |
|
|
$ |
1,226.3 |
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Pro forma adjusted net leverage ratio |
|
|
|
|
|
1.7 |
|
|
|
1.7 |
|
|||
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Gain on sale
|
|
Professional fees
|
|
Income tax
|
|
Non-GAAP
|
||||||||||
|
|
(In millions, except per share data) |
||||||||||||||||||
|
Selling, general and administrative |
$ |
391.7 |
|
|
$ |
3.6 |
|
|
$ |
(1.8 |
) |
|
$ |
— |
|
|
$ |
393.5 |
|
|
Income from operations |
$ |
264.7 |
|
|
$ |
(3.6 |
) |
|
$ |
1.8 |
|
|
$ |
— |
|
|
$ |
262.9 |
|
|
Net income |
$ |
169.2 |
|
|
$ |
(3.6 |
) |
|
$ |
1.8 |
|
|
$ |
0.5 |
|
|
$ |
167.9 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Weighted average common share outstanding - diluted |
|
20.7 |
|
|
|
|
|
|
|
|
|
20.7 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Diluted EPS |
$ |
8.19 |
|
|
$ |
(0.17 |
) |
|
$ |
0.09 |
|
|
$ |
0.02 |
|
|
$ |
8.12 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
SG&A as a % of gross profit |
|
58.2 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
58.4 |
% |
|
Income from operations as a % of revenue |
|
7.2 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
7.2 |
% |
|
There were no adjustments to net income in the third quarter of 2022. |
.
|
Nine Months Ended |
|||||||||||||||||||||||||||||||
|
|
GAAP |
|
Gain on
|
|
Legal
|
|
Hail
|
|
Gain on
|
|
Professional
|
|
Income
|
|
Non-GAAP
|
||||||||||||||||
|
|
(In millions, except per share data) |
||||||||||||||||||||||||||||||
|
Selling, general, and administrative |
$ |
1,203.3 |
|
|
$ |
— |
|
|
$ |
1.9 |
|
|
$ |
(4.3 |
) |
|
$ |
3.6 |
|
|
$ |
(1.8 |
) |
|
$ |
— |
|
|
$ |
1,202.7 |
|
|
Income from operations |
$ |
829.0 |
|
|
$ |
— |
|
|
$ |
(1.9 |
) |
|
$ |
4.3 |
|
|
$ |
(3.6 |
) |
|
$ |
1.8 |
|
|
$ |
— |
|
|
$ |
829.6 |
|
|
Net income |
$ |
547.0 |
|
|
$ |
(13.5 |
) |
|
$ |
(1.9 |
) |
|
$ |
4.3 |
|
|
$ |
(3.6 |
) |
|
$ |
1.8 |
|
|
$ |
3.2 |
|
|
$ |
537.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Weighted average common share outstanding - diluted |
|
21.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.1 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Diluted EPS |
$ |
25.91 |
|
|
$ |
(0.64 |
) |
|
$ |
(0.09 |
) |
|
$ |
0.20 |
|
|
$ |
(0.17 |
) |
|
$ |
0.08 |
|
|
$ |
0.15 |
|
|
$ |
25.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
SG&A as a % of gross profit |
|
57.8 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
57.7 |
% |
|
Income from operations as a % of revenue |
|
7.5 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
7.5 |
% |
|
|
Nine Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Gain on
|
|
Gain on sale
|
|
Income tax
|
|
Non-GAAP
|
||||||||||
|
|
(In millions, except per share data) |
||||||||||||||||||
|
Selling, general, and administrative |
$ |
1,341.9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,341.9 |
|
|
Income from operations |
$ |
970.0 |
|
|
$ |
— |
|
|
$ |
(0.9 |
) |
|
$ |
— |
|
|
$ |
969.0 |
|
|
Net income |
$ |
644.1 |
|
|
$ |
(4.4 |
) |
|
$ |
(0.9 |
) |
|
$ |
1.3 |
|
|
$ |
640.1 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Weighted average common share outstanding - diluted |
|
22.4 |
|
|
|
|
|
|
|
|
|
22.4 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Diluted EPS |
$ |
28.72 |
|
|
$ |
(0.20 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.06 |
|
|
$ |
28.54 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
SG&A as a % of gross profit |
|
56.8 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
56.8 |
% |
|
Income from operations as a % of revenue |
|
8.3 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
8.3 |
% |
|
|
For the Nine Months
|
||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(In millions) |
||||||
|
Adjusted cash flow from operations: |
|
|
|
||||
|
Cash provided by operating activities |
$ |
239.8 |
|
|
$ |
664.4 |
|
|
Change in Floor Plan Notes Payable—Non-Trade, net |
|
(2.8 |
) |
|
|
(293.8 |
) |
|
Change in Floor Plan Notes Payable—Non-Trade associated with floor plan offset, used vehicle borrowing base changes adjusted for acquisition and divestitures |
|
233.7 |
|
|
|
396.9 |
|
|
Change in Floor Plan Notes Payable—Trade associated with floor plan offset, adjusted for acquisition and divestitures |
|
42.9 |
|
|
|
14.1 |
|
|
Adjusted cash flow provided by operating activities |
$ |
513.6 |
|
|
$ |
781.6 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231023765752/en/
Investors & Reporters May Contact:
Manager, Investor Relations
(770) 418-8211
ir@asburyauto.com
Source: