Core Insights - Asbury Automotive Group (ABG) reported adjusted earnings of $7.12 per share for Q4 2023, a decrease of 21.9% year over year, missing the Zacks Consensus Estimate of $7.74 due to lower-than-expected sales in used-vehicle and parts and service segments [1] - Total revenues for the quarter were $3.81 billion, reflecting a 3% year-over-year increase and surpassing the Zacks Consensus Estimate of $3.77 billion [1] Segment Details - New-vehicle revenues increased by 11% year over year to $2.06 billion, exceeding the Zacks Consensus Estimate of $1.96 billion, while gross profit from this segment was $171 million, down 13.6% from the prior year but above the estimate of $161 million [2] - Used-vehicle revenues fell by 7% year over year to $1.07 billion, missing the Zacks Consensus Estimate of $1.09 billion, with gross profit at $54 million, a decline of 20.6% and below the estimate of $62 million [2] - Finance and insurance business net revenues were $171.2 million, down 10% year over year but exceeding the Zacks Consensus Estimate of $157 million, with gross profit rising 5.8% year over year to $163 million, surpassing the estimate of $153 million [2] - Parts and service revenues decreased by 1% year over year to $513.4 million, missing the Zacks Consensus Estimate of $556 million, with gross profit falling 2.1% to $285 million, also below the estimate of $301 million [3] Other Financial Metrics - Adjusted selling, general & administrative expenses as a percentage of gross profit rose to 61.5%, an increase of 442 basis points year over year [4] - As of December 31, 2023, the company had cash and cash equivalents of $45.7 million, down from $235.3 million a year earlier, and long-term debt decreased to $3.21 billion from $3.3 billion [4] - During the quarter, Asbury repurchased 246,000 shares for $47 million, with $203 million remaining under its share repurchase authorization as of December 31, 2023 [4] Market Position - ABG currently holds a Zacks Rank 3 (Hold) [5] - Competitors in the auto space include Modine Manufacturing Company (Zacks Rank 1), NIO Inc. (Zacks Rank 2), and Oshkosh Corporation (Zacks Rank 2) [5] - The Zacks Consensus Estimate for Modine's 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively [5] - NIO's 2023 sales are expected to grow by 10.4% year over year, with EPS estimates for 2024 improving by 7 cents [5] - Oshkosh's 2024 sales and earnings estimates suggest year-over-year growth of 6.7% and 4%, respectively, with EPS estimates improving by 16 cents and 29 cents for 2024 and 2025 [5]

Financial Data and Key Metrics Changes - For the full year of 2023, the company reported revenue of $14.8 billion with a gross profit margin of 18.6% and an adjusted operating margin of 7.3% [8] - Adjusted earnings per share (EPS) was $32.60, and adjusted EBITDA exceeded $1.1 billion [8] - The company generated adjusted net income of $146 million for Q4 2023, with an adjusted EPS of $7.12 [17] Business Line Data and Key Metrics Changes - Same-store new vehicle revenue grew by 10% in Q4 and 7% for the year, with new units volume increasing by 7% in Q4 and 3% overall [12] - Used retail revenue decreased by 12% for the quarter and full year, with unit volume down 10% in both periods [13] - Parts and Service revenue was $499 million, consistent with the prior year, and gross profit margin was 55.6% [15] - Clicklane reported a 32% growth in total retail units year-over-year, with new vehicle penetration increasing to 51% of total Clicklane units in Q4 [16] Market Data and Key Metrics Changes - The same-store new vehicle day supply was 43 days at the end of December, an increase of 7 days from September [11] - The company anticipates challenges in acquiring preowned vehicles in 2024 due to a limited pool of lease and rental fleets [13] Company Strategy and Development Direction - The company aims for disciplined capital allocation and plans to continue seeking acquisitions of high-quality operators in markets with strong demographics [9][10] - The strategic vision includes achieving $30 billion or greater in revenue, adapting to macro factors while maintaining a focus on growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a strong January performance and a commitment to improving guest experience through technology integration [30] - The company expects 2024 to be impacted by deferred revenue headwinds from TCA, with pretax income anticipated to decrease [18] Other Important Information - The company repurchased 1.3 million shares for $258 million and ended the quarter with $460 million in liquidity [8][20] - The pro forma adjusted net leverage was 2.5x at the end of December, with a target to reduce it to approximately 2x by the end of 2024 [21] Q&A Session Summary Question: Long-term targets and Clicklane progress - Management acknowledged the challenges in Clicklane's growth but remains optimistic about its future contribution as consumer adoption increases [24][25] Question: Parts and Service performance expectations - Management indicated that improvements in Parts and Service are expected in Q1, driven by technology integration and training efforts [28][30] Question: Used vehicle inventory dynamics - Management noted a conservative approach to acquiring used vehicle inventory, emphasizing the need for a more aggressive stance moving forward [35][36] Question: SG&A performance and drivers - Management attributed the slight increase in SG&A to higher advertising costs and loaner vehicle expenses, with expectations for improvement in 2024 [37][39] Question: New vehicle GPU and OEM dynamics - Management reported that new vehicle gross profit margins varied by brand, with expectations for normalization in 2024 [41][43] Question: Tekion DMS platform benefits - Management highlighted the efficiencies expected from the Tekion platform, which will reduce the need for multiple software applications and improve customer experience [45][50] Question: Franchise and goodwill impairments - Impairments were primarily related to Stellantis and Nissan stores due to increased WACC from rising interest rates [68] Question: Debt profile and M&A strategy - Management clarified that cash flow generation allows for M&A and share buybacks, with plans to refinance existing debt rather than accumulate more [70][72]

For the quarter ended December 2023, Asbury Automotive Group (ABG) reported revenue of $3.81 billion, up 2.9% over the same period last year. EPS came in at $7.12, compared to $9.12 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.77 billion, representing a surprise of +1.20%. The company delivered an EPS surprise of -8.01%, with the consensus EPS estimate being $7.74.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

Asbury Automotive Group (ABG) came out with quarterly earnings of $7.12 per share, missing the Zacks Consensus Estimate of $7.74 per share. This compares to earnings of $9.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -8.01%. A quarter ago, it was expected that this auto dealership chain would post earnings of $8.44 per share when it actually produced earnings of $8.12, delivering a surprise of -3.79%.Over the last four q ...

Core Insights - Asbury Automotive Group reported a significant decline in net income for Q4 2023, with net income of $56 million ($2.70 per diluted share), down 89% from $353 million ($15.95 per diluted share) in Q4 2022 [1] - The decrease in net income was attributed to non-cash asset impairments of $117.2 million or $4.29 per diluted share in Q4 2023, compared to gains on dealership divestitures of $203 million or $6.92 per diluted share in Q4 2022 [1][3] - Adjusted net income for Q4 2023 was $146 million ($7.12 per diluted share), a 28% decrease from $202 million ($9.12 per diluted share) in Q4 2022 [1] Financial Performance - Total revenue for Q4 2023 was $3.8 billion, an increase of 3% year-over-year, while gross profit decreased by 9% to $673 million [5] - The gross margin decreased by 226 basis points to 17.7% in Q4 2023 [5] - New vehicle unit volume increased by 8%, with new vehicle revenue rising by 11%, but new vehicle gross profit decreased by 14% [5] - Used vehicle retail unit volume and revenue both decreased by 11%, with used vehicle retail gross profit down by 21% [5] - Finance and insurance (F&I) per vehicle retailed decreased by 11% to $2,304 [5] Operational Highlights - The company completed 16 divestitures in 2022, contributing $683 million in revenue for the year [1] - The integration of acquired businesses and the rollout of technology initiatives were emphasized as key strategies for future growth [2][3] - The company reported a total adjusted EBITDA of $1.1 billion for the full year 2023, a decrease of 15% from the prior year [8] Shareholder Returns - Asbury repurchased approximately 246,000 shares for $47 million during Q4 2023, totaling 1.3 million shares for $258 million for the full year [10] - As of December 31, 2023, the company had $203 million remaining on its share repurchase authorization [10] Liquidity and Leverage - As of December 31, 2023, the company had total liquidity of $460 million, including cash and availability under the revolver [9] - The adjusted net leverage ratio was reported at 2.5x at the end of the quarter [9]

The upcoming report from Asbury Automotive Group (ABG) is expected to reveal quarterly earnings of $7.74 per share, indicating a decline of 15.1% compared to the year-ago period. Analysts forecast revenues of $3.77 billion, representing an increase of 1.6% year over year.The consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☒ EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☐ EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-31262 ASBURY AUTOMOTIVE GROUP, INC. (Exact name of Registrant as specified in its charter) Delaware 01-0609375 (State or other jurisdi ...

Asbury Automotive Group, Inc. (NYSE:ABG) Q3 2023 Earnings Conference Call October 24, 2023 10:00 AM ET Company Participants George Villasana - SVP, Chief Legal Officer & Secretary David Hult - President, CEO & Director Daniel Clara - SVP, Operations Michael Welch - SVP & CFO Conference Call Participants Daniel Imbro - Stephens Inc. John Murphy - Bank of America Merrill Lynch Rajat Gupta - JPMorgan Chase & Co. Ryan Sigdahl - Craig-Hallum Capital Group Bret Jordan - Jefferies Operator Greetings, and welcome t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☒ EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☐ EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-31262 ASBURY AUTOMOTIVE GROUP, INC. (Exact name of Registrant as specified in its charter) Delaware 01-0609375 (State or other jurisdiction ...

Financial Data and Key Metrics Changes - The company reported $3.7 billion in revenue with a gross profit margin of 19.1% for Q2 2023, adjusted SG&A as a percentage of gross profit was 57%, leading to an adjusted operating margin of 7.8% [6][14] - Adjusted EBITDA was $307 million, and adjusted EPS was $8.95, reflecting strong financial performance [6][14] - Adjusted net income for Q2 2023 was $188 million, excluding certain gains and losses, which decreased diluted EPS by $0.40 [14][15] Business Line Data and Key Metrics Changes - New vehicle revenue grew 8% year-over-year, with an average gross profit per vehicle of $4,832 and a gross margin of 9.5% [8][9] - Used retail revenue and unit volume decreased by 15% compared to the prior year, with a gross profit per vehicle of $2,085 [8][9] - Parts and Service revenue increased by 6%, with customer pay revenue also growing by 6% [9][10] Market Data and Key Metrics Changes - The average age of cars in the market is 12.5 years, the highest ever, which supports growth in parts and service business [6][10] - Clicklane achieved a record of over 11,400 vehicles sold in Q2, a 74% increase year-over-year, generating $500 million in revenue [11][12] Company Strategy and Development Direction - The company aims to be the most guest-centric automotive retailer, focusing on profitability and capital deployment through share buybacks and acquisitions [5][6] - There is a strong emphasis on integrating over 50 acquired stores while maintaining operational efficiency [7][14] - The company is actively pursuing acquisitions that will be accretive, with a focus on portfolio management and brand mix [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of automotive retail, citing the aging vehicle fleet and the transition to EVs as growth drivers [6][10] - The company anticipates mid- to high single-digit growth in parts and service due to pent-up demand and the increasing complexity of vehicles [33][34] Other Important Information - The company repurchased 960,000 shares for $190 million in Q2 2023, reflecting strong cash flow from operations [5][16] - The effective tax rate for Q2 2023 was 24.8%, consistent with the previous year [15] Q&A Session Summary Question: What drove the leverage in SG&A growth? - Management indicated that healthy margins helped keep SG&A in check, with opportunities for further expense reduction in the next 12 to 18 months [20] Question: Can you discuss GPU trends and any weak spots in profitability? - Management noted that domestic vehicle supply is returning to normal levels, and they expect to maintain gross profit per transaction [22] Question: What are the criteria for acquisition targets? - The company is focused on portfolio management and is in discussions for acquisitions that meet their criteria [25] Question: What is the expectation for EV service work and capital investment? - Significant training and infrastructure investment are required for EV service, and there is still pent-up demand for traditional service work [28][29] Question: How is the company managing floor plan interest expense? - The company is using excess cash to offset floor plan balances, effectively mitigating interest expenses [35] Question: What is the impact of EVs on GPU and inventory? - Management indicated that gross profits for EVs are comparable to internal combustion vehicles, with inventory management being crucial [40] Question: What caused the deceleration in parts and service growth? - The deceleration was primarily due to operational integration challenges from recent acquisitions, which are expected to improve over time [43]