- 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
the U.S., with over $3 billion in annual revenue
- Renewed and upsized existing credit facility from $2.55 billion
to $2.80 billion
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one
of the largest automotive retail and service companies in the U.S.,
reported third quarter 2023 net income of $169 million ($8.19 per
diluted share), a decrease of 17% from $205 million ($9.23 per
diluted share) in third quarter 2022. Third quarter 2023 adjusted
net income, a non-GAAP measure, decreased 18% year-over-year to
$168 million ($8.12 per diluted share) compared to adjusted net
income of $205 million ($9.23 per diluted share) in third quarter
2022. During 2022, the Company completed sixteen divestitures that
contributed $683 million in revenue for the year. Four of the
divestitures closed in the first quarter, three in the second
quarter, and nine in the fourth quarter of 2022.
“I’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 David Hult, Asbury’s President
and Chief Executive Officer. “We are excited about our pending
acquisition of Koons Automotive, which would bring over $3 billion
in revenue and a talented group of team members and leaders to the
Asbury team. And finally, we are proud of our team members that
continue to deliver a best-in-class guest experience while
maintaining our disciplined cost strategy.”
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 $2.7 million ($0.13 per diluted share) gain on sale of real
estate and $1.3 million ($0.06 per diluted share) of professional
fees related to the acquisition of the Jim Koons Automotive
Companies.
There were no adjustments to adjusted net income in the third
quarter 2022.
Third Quarter 2023 Operational
Summary
Total Company vs. 3rd Quarter 2022:
- 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 September 30, 2023, the Company had cash and floorplan
offset accounts of $1.0 billion (which excludes $11 million of cash
at Total Care Auto, Powered by Landcar) and availability under the
used vehicle floorplan line and revolver of $662 million for a
total of approximately $1.7 billion in liquidity. The Company’s
adjusted net leverage ratio, which is calculated as set forth in
our credit facility, was 1.7x at quarter end.
Credit Facility Renewal
On October 20, 2023, the Company renewed and upsized its
existing credit facility from $2.55 billion to $2.80 billion. The
agreement extended the credit facility to October 2028.
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 $211 million. As of September 30, 2023, the Company had
$250 million remaining on its share repurchase authorization.
The shares may be purchased from time to time in the open
market, in privately negotiated transactions or in other manners as
permitted by federal securities laws and other legal and
contractual requirements. The extent to which the Company
repurchases its shares, the number of shares and the timing of any
repurchase will depend on such factors as Asbury’s stock price,
general economic and market conditions, the potential impact on its
capital structure, the expected return on competing uses of capital
such as strategic dealership acquisitions and capital investments
and other considerations. The program does not require the Company
to repurchase any specific number of shares, and may be modified,
suspended or terminated at any time without further notice.
Earnings Call
Additional commentary regarding the first quarter results will
be provided during the earnings conference call on Tuesday, October
24, 2023, at 10:00 a.m. ET.
The conference call will be simulcast live on the internet and
can be accessed by logging onto https://investors.asburyauto.com. A
replay will be available on this site for 30 days.
In addition, live audio will be accessible to the public.
Participants may enter the conference call five to ten minutes
prior to the scheduled start of the call by dialing:
Domestic:
(877) 407-2988
International:
+1 (201) 389-0923
Passcode:
13741871
About Asbury Automotive Group,
Inc.
Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company
headquartered in Duluth, GA, is one of the largest automotive
retailers in the U.S. In late 2020, Asbury embarked on a five-year
plan to increase revenue and profitability strategically through
organic and acquisitive growth as well as their innovative
Clicklane digital vehicle purchasing platform, with its
guest-centric approach as Asbury’s constant North Star. Asbury
currently operates 138 new vehicle dealerships, consisting of 181
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 31 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
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
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
ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures-Consolidated (In
millions)
(Unaudited)
September 30, 2023
December 31, 2022
Increase
(Decrease)
% 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 $3.4 million of inventory
classified as assets held for sale as of December 31, 2022
(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
September 30, 2023 (a)
December 31, 2022 (b)
September 30, 2022 (b)
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 Ended
September 30,
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
%
Volkswagen
1
%
2
%
Other imports
1
%
1
%
Total imports
41
%
39
%
Domestic
Chrysler, Dodge, Jeep, Ram
12
%
16
%
Ford
10
%
9
%
Chevrolet, Buick, GMC
6
%
5
%
Total domestic
28
%
30
%
Total New Vehicle Revenue
100
%
100
%
For the Three Months Ended
September 30,
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
%
ASBURY AUTOMOTIVE GROUP, INC.
OPERATING HIGHLIGHTS-CONSOLIDATED (In
millions)
(Unaudited)
For the Three Months Ended
September 30,
%
Change
For the Nine Months Ended
September 30,
% Change
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.
ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING
HIGHLIGHTS-CONSOLIDATED (In millions)
(Unaudited)
For the Three Months Ended
September 30,
% Change
For the Nine Months Ended
September 30,
% Change
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.
ASBURY AUTOMOTIVE GROUP, INC.
SEGMENT REPORTING (Unaudited)
Three Months Ended September
30, 2023
Three Months Ended September
30, 2022
Dealerships
TCA After Eliminations
Total Company
Dealerships
TCA After Eliminations
Total Company
(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 September
30, 2023
Nine Months Ended September
30, 2022
Dealerships
TCA After Eliminations
Total Company
Dealerships
TCA After Eliminations
Total Company
(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
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
September 30, 2023
September 30, 2022
September 30, 2023
June 30, 2023
(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 September
30, 2023
GAAP
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
$
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 September
30, 2023
GAAP
Gain on dealership
divestiture, net
Legal settlement
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
$
1,203.3
$
—
$
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 September
30, 2022
GAAP
Gain on dealership
divestitures, net
Gain on sale of real
estate
Income tax effect
Non-GAAP adjusted
(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 Ended
September 30,
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: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
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