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Thu Feb 08 2024

Asbury Automotive Group Reports Fourth Quarter Financial Results

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  • 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

DULUTH, Ga.--(BUSINESS WIRE)--Feb. 8, 2024-- 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

 

 

Investors & Reporters May Contact:
Joe Sorice
Manager, Investor Relations
(770) 418-8211
ir@asburyauto.com

Source: Asbury Automotive Group, Inc.