Asbury Automotive Group(US:ABG)2025-02-26 21:20Financial Performance - Total revenue for 2024 reached $17,188.6 million, an increase of 15.8% compared to $14,802.7 million in 2023 [389]. - Net income for 2024 was $430.3 million, down 28.5% from $602.5 million in 2023 [392]. - Gross profit for 2024 was $2,948.6 million, compared to $2,755.8 million in 2023, reflecting a gross margin improvement [389]. - Comprehensive income for 2024 was $426.1 million, down from $589.1 million in 2023, reflecting overall market conditions [398]. - Earnings per share (diluted) for 2024 was $21.50, down from $28.74 in 2023, a decline of 25.5% [389]. Assets and Liabilities - The company’s total assets increased to $10,337.0 million in 2024, compared to $10,159.4 million in 2023, marking a growth of 1.8% [387]. - Current liabilities decreased slightly to $2,836.3 million in 2024 from $2,875.7 million in 2023 [387]. - Long-term debt decreased to $3,023.9 million in 2024 from $3,121.2 million in 2023, a reduction of 3.1% [387]. - The company had total debt of $3.16 billion as of December 31, 2024, excluding floor plan notes payable and certain debt issuance costs [456]. - As of December 31, 2024, total mortgage notes payable outstanding were $29.6 million, down from $31.9 million in 2023, with a revised interest rate of 5.8% [538]. Cash Flow - Cash provided by operating activities increased significantly to $671.2 million in 2024, compared to $313.0 million in 2023, and $696.0 million in 2022 [398]. - The company experienced a net increase in cash and cash equivalents of $23.7 million for the year ended December 31, 2024, compared to a decrease of $(189.6) million in 2023 [399]. - The net cash provided by financing activities for the year ended December 31, 2024, was $(510.3) million, a significant decrease compared to $1,175.8 million in 2023 [399]. Inventory and Receivables - The company reported a 10.5% increase in accounts receivable, netting $285.5 million in 2024 versus $226.1 million in 2023 [387]. - Inventories increased to $1,978.8 million in 2024, up from $1,768.3 million in 2023, indicating an 11.9% rise [387]. - Total inventories, net, rose to $1,978.8 million in 2024 from $1,768.3 million in 2023, with new vehicle inventories at $1,450.6 million [483]. Acquisitions and Divestitures - The acquisition of Jim Koons Dealerships on December 11, 2023, involved a total purchase price of approximately $1.50 billion, including $256.1 million in new vehicle floor plan financing [472]. - The Koons acquisition added $2,805.5 million in revenue and $86.9 million in net income to the consolidated statements for the year ended December 31, 2024 [476]. - The company completed dealership divestitures, generating proceeds of $196.3 million in 2024, compared to $30.7 million in 2023 [398]. Impairments and Charges - The company recorded impairment charges of $134.1 million related to manufacturer franchise rights during the second quarter of 2024 [369]. - The company recognized asset impairments of $149.5 million in 2024, compared to $117.2 million in 2023, indicating an increase in asset impairment charges [509]. - The company recorded a goodwill impairment charge of $1.3 million during the year ended December 31, 2024, related to one dealership meeting the assets held for sale criteria [507]. Debt and Financing - The company has six interest rate swap agreements in place to hedge against fluctuations in variable rate cash flows [354]. - The 2023 Senior Credit Facility allows for an increase in the size of the facilities by up to $750.0 million, subject to conditions [515]. - Borrowings under the 2023 Senior Credit Facility bear interest based on Daily Simple SOFR or the Base Rate, with an Applicable Rate ranging from 1.00% to 2.00% [518]. Operational Highlights - The company operates in two reportable segments: Dealerships and Total Care Auto (TCA) [404]. - Major manufacturers contributing to new vehicle sales included Toyota (30%), Ford (13%), and Honda (10%), with no other manufacturer exceeding 5% [461]. - The company expects revenues to be higher during the second and third quarters due to seasonal demand for new vehicles [405]. Investments - The company maintains total investments of $348.6 million as of December 31, 2024 [455]. - The company has a VOBA of $5.6 million related to the acquisition of TCA in 2021, amortized over 5 years [426]. - The company has determined it has both the intent and ability to hold investments until market price recovery, resulting in no credit losses recognized on available-for-sale debt securities during 2024 and 2023 [494].