Financial Performance - Consolidated revenue for Q1 2025 decreased to $4.15 billion, down from $4.20 billion in the prior year[105]. - Consolidated gross profit for Q1 2025 decreased to $724.2 million, compared to $750.0 million for the prior year[105]. - Total revenue for the three months ended March 31, 2025 decreased by $52.8 million (1%) to $4,148.5 million compared to the same period in 2024, primarily due to a $121.1 million (9%) decrease in used vehicle revenue[109]. - Net income for the three months ended March 31, 2025 decreased by $15.0 million (10%) to $132.1 million, with diluted net income per share falling to $6.71[111]. - Total gross profit decreased by $25.8 million (3%) to $724.2 million, with a notable $19.8 million (12%) decrease in new vehicle gross profit[109]. - Operating income decreased by $28.4 million (11%) to $234.3 million, primarily due to a decrease in gross profit and an increase in asset impairments[110]. - Selling, general, and administrative expenses decreased by $12.2 million (3%) to $456.4 million, contributing to the overall reduction in operating expenses[110]. - Total other expenses, net decreased by $8.0 million (12%), primarily due to a decrease in floor plan interest expense and other interest expense[111]. - Income tax expense decreased by $5.4 million (11%) due to a $20.4 million (10%) decrease in income before income taxes, with an effective tax rate of 24.7% for the three months ended March 31, 2025[135]. Vehicle Sales and Revenue - The decrease in consolidated revenue was primarily due to a decrease in used vehicle units sold, offset by an increase in new vehicle units sold[105]. - New vehicle revenue increased by $73.8 million (4%) to $2,138.1 million, driven by a 2% increase in new vehicle units sold[113]. - Used vehicle revenue decreased by $121.1 million (9%) to $1,235.8 million for the three months ended March 31, 2025, compared to $1,356.9 million in the same period of 2024[116]. - Used vehicle retail revenue fell by $112.5 million (9%) to $1,078.9 million, while wholesale revenue decreased by $8.6 million (5%) to $156.9 million[116]. - Total used vehicle retail unit sales decreased by 10% on an all store basis and by 8% on a same store basis[116]. - The revenue mix for new vehicles increased to 51.5% from 49.1% year-over-year, while used vehicle retail revenue decreased to 26.0% from 28.4%[109]. Gross Profit and Margins - The gross profit margin for new vehicles decreased to 6.7% from 7.9% in the prior year, reflecting a decrease in gross profit per new vehicle sold by $555 (14%) to $3,448[113]. - The gross profit per vehicle sold for both new and used vehicles declined, contributing to the overall decrease in gross profit[105]. - Used vehicle retail gross profit margins decreased from 5.5% to 5.2% for all stores and on a same store basis[117]. - Parts and service gross profit experienced growth, partially offsetting the declines in vehicle gross profit[105]. - Total parts and service gross profit increased by $8.5 million (3%) to $342.7 million, driven by increased customer pay and warranty volume[122]. Acquisitions and Expansion - The company is expected to acquire the Herb Chambers automotive group for approximately $1.34 billion, including $750 million for goodwill[103][104]. - The acquisition includes 33 dealerships, 52 franchises, and three collision centers, anticipated to close in Q2 2025[104]. - The company operates 196 new vehicle franchises across 150 dealership locations, representing 31 brands within 14 states as of March 31, 2025[94]. Economic and Market Conditions - The company’s vehicle sales are influenced by economic conditions, consumer confidence, and availability of desirable vehicles from manufacturers[98]. - The automotive retail industry is facing challenges from macroeconomic factors such as rising interest rates and inflation, which may impact demand[100]. - The seasonally adjusted annual rate (SAAR) for new vehicle sales in the U.S. increased to approximately 16.5 million, up from 15.4 million in the same period last year, indicating higher inventory supply and consumer demand[115]. Cash Flow and Liquidity - Net cash provided by operating activities was $225.0 million for the three months ended March 31, 2025, compared to $177.1 million for the same period in 2024[148]. - Adjusted cash flow provided by operating activities decreased by $21.3 million to $187.4 million for the three months ended March 31, 2025, primarily due to changes in working capital[149]. - For the three months ended March 31, 2025, total available liquidity was $963.7 million, consisting of cash and cash equivalents of $87.4 million, available funds in floor plan offset accounts of $116.7 million, and $485.9 million under the revolving credit facility[136]. Expenses and Impairments - Asset impairment charges recognized during the three months ended March 31, 2025, totaled $14.3 million, compared to no impairment charges in the same period of 2024[130]. - Floor plan interest expense decreased by $2.1 million (9%) to $20.7 million for the three months ended March 31, 2025, primarily due to higher balances in floor plan offset accounts[131]. - Other interest expense decreased by $1.8 million (4%) to $42.3 million, attributed to a $2.1 million decrease in credit facility interest expense due to lower interest rates[132]. Capital Expenditures - Capital expenditures, excluding real estate purchases, were $21.4 million for the three months ended March 31, 2025, down from $25.7 million in the same period of 2024[150]. - The company expects capital expenditures of approximately $260.3 million in 2025 for facility upgrades and technology investments[155].

Core Insights - Asbury Automotive (ABG) reported first-quarter 2025 adjusted earnings per share of $6.82, missing the Zacks Consensus Estimate of $6.84 and down from $7.21 in the previous year [1] - Total revenues for the quarter were $4.15 billion, a decrease of 1.2% year over year, and also below the Zacks Consensus Estimate of $4.4 billion [1] Segment Details - New vehicle revenues increased by 4% year over year to $2.14 billion, but fell short of the Zacks Consensus Estimate of $2.24 billion due to lower unit sales [2] - Retail units sold in the new vehicle segment totaled 41,496, up 2% year over year, but below the consensus mark of 43,854 units [2] - The average selling price (ASP) for new vehicles was $51,525, up 2% year over year, exceeding the consensus estimate of $51,133 [2] - Gross profit from the new vehicle segment was $143.1 million, down 12% from the prior-year quarter and missing the consensus estimate of $151 million [2] Used Vehicle Performance - Used vehicle retail revenues declined by 9% year over year to $1.08 billion, missing the Zacks Consensus Estimate of $1.2 billion due to lower ASP and unit sales [3] - Retail used vehicle units sold totaled 35,415, down 10% year over year, lagging behind the consensus mark of 39,161 units [3] - The ASP for used vehicles was $30,465, up 1% year over year, but missed the consensus estimate of $30,476 [3] - Gross profit from the used vehicle segment was $56.2 million, down 14% year over year and below the consensus estimate of $59 million [3] Other Business Segments - Revenues from the used vehicle wholesale business fell by 5% to $157 million, meeting the consensus mark [4] - Gross profit from the wholesale unit increased by 21% to $8.4 million, surpassing the consensus estimate of $2.75 million [4] - Finance and insurance business net revenues were $187 million, down 1% year over year and below the consensus estimate of $189 million [4] - Gross profit from finance and insurance was $173.9 million, down 4% year over year but exceeding the consensus estimate of $165 million [4] Parts and Service Business - Revenues from the parts and service business were $587.6 million, slightly down from $590.4 million in the previous year and missing the Zacks Consensus Estimate of $630 million [5] - Gross profit from this segment was $342.7 million, which lagged the consensus mark of $359 million but rose 3% year over year [5] Financial Position - As of March 31, 2025, the company had cash and cash equivalents of $124.6 million, up from $69.4 million as of December 31, 2024 [6] - Long-term debt was $3.13 billion, down from $3.14 billion as of December 31, 2024 [6] - The company did not repurchase any shares in the first quarter of 2025 [6]

Financial Performance - First quarter 2025 net income was $132 million ($6.71 per diluted share), a decrease of 10% from $147 million ($7.21 per diluted share) in Q1 2024[2] - Revenue for Q1 2025 was $4.1 billion, a decrease of 1% compared to the same period in 2024[10] - Adjusted net income for Q1 2025 was $134 million ($6.82 per diluted share), down 9% from $147 million ($7.21 per diluted share) in Q1 2024[2] - Gross profit for Q1 2025 was $724 million, a decrease of 3% from the previous year[10] - Total revenue for Q1 2025 was $4,148.5 million, a decrease of 1% compared to $4,201.2 million in Q1 2024[25] - Net income decreased by 10% to $132.1 million, with diluted earnings per share at $6.71, down 7% from $7.21[25] - Adjusted EBITDA for the twelve months ended March 31, 2025, was $963.4 million, down from $982.0 million for the previous year, indicating a decline of 1.7%[39] - The diluted EPS for the three months ended March 31, 2025, was $6.71, compared to $6.82 for the same period in 2024, reflecting a decrease of 1.6%[40] Revenue Breakdown - New vehicle revenue increased by 4% to $2,138.1 million, while total used vehicle revenue decreased by 9% to $1,235.8 million[25] - New vehicle unit volume increased by 2% in Q1 2025, while used vehicle retail unit volume decreased by 10%[10] - The average selling price of new vehicles rose by 2% to $51,525, while the average selling price of used vehicles increased by 1% to $30,465[33] - Total unit sales of new vehicles increased by 2% to 41,496 units compared to 40,677 units in the prior year[33] Expenses and Margins - Operating margin for Q1 2025 was 5.6%, with an adjusted operating margin of 5.8%[10] - Selling, general and administrative expenses decreased by 3% to $456.4 million from $468.6 million year-over-year[33] - The income from operations as a percentage of revenue decreased to 5.6% from 6.3% in the previous year[33] - The gross margin for total new vehicles decreased by 120 basis points to 6.7% from 7.9%[33] - Selling, general and administrative (SG&A) expenses for the three months ended March 31, 2025, were $456.4 million, with SG&A as a percentage of gross profit at 63.0%[40] Liquidity and Debt - As of March 31, 2025, the company had total liquidity of $964 million, including cash and availability under credit lines[9] - Cash and cash equivalents increased by 80% to $124.6 million compared to $69.4 million in Q1 2024[27] - Long-term debt decreased slightly to $3,128.5 million from $3,138.6 million in Q4 2024[27] - The adjusted long-term net debt as of March 31, 2025, was $2,650.7 million, compared to $2,796.9 million as of December 31, 2024, showing a reduction of 5.2%[39] - The transaction adjusted net leverage ratio as of March 31, 2025, was 2.75, slightly down from 2.85 as of December 31, 2024[39] Inventory and Supply Chain - Inventory decreased by 8% to $1,822.4 million from $1,978.8 million in Q1 2024[27] - Days supply of new vehicle inventory improved to 44 days from 49 days in Q4 2024, while used vehicle inventory days supply decreased to 31 days from 37 days[28] Acquisitions and Divestitures - The company completed two divestitures in Q1 2025, contributing estimated annualized revenue of $79 million[2] - The company announced a definitive agreement to acquire The Herb Chambers Automotive Group, which has approximately $3 billion in annual revenue[4] Other Financial Metrics - The company reported a 52% increase in finance and insurance costs, rising to $13.1 million from $8.6 million in Q1 2024[25] - Total non-core items for the twelve months ended March 31, 2025, amounted to $155.4 million, compared to $152.4 million in the previous year[39] - The impact of dealership acquisitions and divestitures on transaction adjusted EBITDA was a negative $1.1 million for the twelve months ended March 31, 2025[39] - Cash provided by operating activities for the three months ended March 31, 2025, was $225.0 million, an increase from $177.1 million in the same period of 2024, representing a growth of 27.0%[40] - Adjusted cash flow provided by operating activities for the three months ended March 31, 2025, was $187.4 million, compared to $208.7 million in the same period of 2024, indicating a decline of 10.6%[40]

Financial Data and Key Metrics Changes - The company generated $4.1 billion in revenue, with a gross profit of $724 million and a gross profit margin of 17.5% [12] - Adjusted operating margin was 5.8%, and adjusted earnings per share (EPS) was $6.82 [12] - Adjusted net income for Q1 2025 was $134 million, excluding certain non-cash items [21] - Adjusted SG&A as a percentage of gross profit was 64% [22] Business Line Data and Key Metrics Changes - Same store revenue for new vehicles was up 6% year over year, with units up 4% [14] - New average gross profit per vehicle was $3,449 [14] - Used vehicle unit volume was down 8% year over year, with used retail gross profit per unit at $15.87 [15] - Parts and service gross profit was up 5% for the quarter, with a gross profit margin of 58.3% [17] Market Data and Key Metrics Changes - Approximately 56% of new vehicle units sold in Q1 were produced in America, insulating them from tariffs [7] - The company experienced a wide range of approaches from OEMs regarding tariff impacts, making predictions challenging [7] Company Strategy and Development Direction - The company is focused on a disciplined growth strategy, highlighted by the pending acquisition of the Herb Chambers Automotive Group [10] - Plans to reduce leverage over the next 18 to 24 months following the acquisition [11] - The implementation of Techeon is expected to improve productivity and guest experience [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter faced challenges due to weather-related disruptions and tariff uncertainties [42] - The company remains optimistic about long-term growth, particularly in parts and service due to an aging vehicle fleet [19] - Management emphasized the importance of focusing on gross profit rather than volume during uncertain market conditions [42] Other Important Information - The company expects to close the Herb Chambers acquisition by the end of Q2 2025, pending OEM approval [10] - Free cash flow for Q1 2025 was $166 million, with liquidity at $964 million [25] Q&A Session Summary Question: Regarding TCA and tariff impacts - Management indicated that tariffs could slow down deferral impacts, affecting future earnings [30] Question: Integration of Techeon and SG&A savings - The rollout of Techeon is progressing well, with expectations of significant SG&A savings through reduced software costs and improved productivity [32] Question: Gross profit performance compared to peers - Management acknowledged weather impacts and emphasized a focus on maximizing returns rather than chasing volume [42] Question: Impact of tariffs on the Herb Chambers acquisition - The asset purchase agreement does not include a breakup fee for the company, and management sees no reason to walk away from the deal [50] Question: Front end gross outlook - Management believes the company is reaching a floor on front end gross, focusing on profitability rather than volume [56] Question: Parts and service growth outlook - Management maintains a mid-single-digit growth outlook for parts and service, with expectations of increased traffic as weather conditions improve [60] Question: Techeon and revenue opportunities - The integration of Techeon is expected to enhance communication and marketing efficiency, leading to potential revenue growth [66]

A B G | A s b u r y A u t o m o t i v e Investor Relations Presentation 2025 First Quarter Forward-Looking Statements This presentation 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, beliefs, expectations and assumptions, projections regarding Asbury's financial position, liquidity, results of operations, cas ...

Core Insights - Asbury Automotive Group reported a revenue of $4.15 billion for the quarter ended March 2025, reflecting a decrease of 1.3% year-over-year and falling short of the Zacks Consensus Estimate of $4.4 billion by 5.80% [1] - The company's earnings per share (EPS) was $6.82, down from $7.21 in the same quarter last year, with an EPS surprise of -0.29% against the consensus estimate of $6.84 [1] Financial Performance Metrics - New vehicle unit sales were 41,496, below the average estimate of 43,854 [4] - Used vehicle retail unit sales totaled 35,415, compared to the average estimate of 39,161 [4] - The average selling price for new vehicles was $51.53 billion, exceeding the average estimate of $51.13 billion [4] - Average gross profit per unit for total new vehicles was $3.45 billion, slightly below the average estimate of $3.46 billion [4] - Average gross profit per unit for used vehicle retail was $1.59 billion, surpassing the average estimate of $1.51 billion [4] Revenue Breakdown - Revenues from new vehicles were $2.14 billion, compared to the average estimate of $2.24 billion, representing a year-over-year increase of 3.6% [4] - Revenues from used vehicles were $1.24 billion, below the average estimate of $1.34 billion, showing a year-over-year decline of 8.9% [4] - Parts and service revenues were $587.60 million, compared to the average estimate of $629.90 million, reflecting a year-over-year decrease of 0.5% [4] - Finance and insurance net revenues were $187 million, slightly below the average estimate of $189.02 million, with a year-over-year decline of 1.4% [4] - Retail revenues from used vehicles were $1.08 billion, compared to the average estimate of $1.20 billion, indicating a year-over-year decrease of 9.4% [4] - Wholesale revenues from used vehicles were $156.90 million, slightly below the average estimate of $157.03 million, representing a year-over-year decline of 5.2% [4] Stock Performance - Asbury Automotive shares returned +1.6% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company generated $4.1 billion in revenue, with a gross profit of $724 million and a gross profit margin of 17.5% [13] - Adjusted operating margin was 5.8%, and adjusted earnings per share (EPS) was $6.82 [13] - Adjusted SG&A as a percentage of gross profit was 63.9% [13] - Adjusted net income for the first quarter was $134 million, excluding certain non-cash items [21] Business Line Data and Key Metrics Changes - Same store revenue for new vehicles increased by 6% year over year, with units up 4% [15] - New average gross profit per vehicle was $3,449 [15] - Used vehicle unit volume decreased by 8% year over year, with retail gross profit per unit at $15.87 [16] - Parts and service gross profit increased by 5%, with a gross profit margin of 58.3%, an expansion of 170 basis points [18] Market Data and Key Metrics Changes - The company estimates that approximately 56% of new vehicle units in Q1 were produced in America, insulating them from tariff impacts [8] - The Stellantis headwind to the company's performance was estimated at $125 per vehicle [15] Company Strategy and Development Direction - The company is focused on a disciplined growth strategy, including the pending acquisition of the Herb Chambers Automotive Group, valued at $1.34 billion [26] - The company plans to reduce leverage over the next 18 to 24 months following the acquisition [12] - The implementation of the Techeon system is expected to improve productivity and guest experience [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter was impacted by weather-related disruptions and tariff uncertainties [41][44] - The company remains optimistic about long-term growth, particularly in parts and service due to an aging vehicle fleet [20] - Management emphasized the importance of focusing on gross profit rather than volume in the current market conditions [42] Other Important Information - The company generated $187 million of adjusted operating cash flow for the first quarter [24] - Free cash flow was $166 million for the first quarter [25] - The company ended Q1 with $964 million of liquidity [25] Q&A Session Summary Question: Inquiry about TCA and tariff impacts - Management indicated that tariffs could slow down deferral impacts, affecting future earnings [31] Question: Integration of Techeon and SG&A savings - Management reported that the rollout of Techeon is progressing well and is expected to lead to significant SG&A savings [34] Question: Gross profit performance compared to peers - Management acknowledged weather impacts and emphasized a focus on maximizing returns rather than chasing volume [42] Question: Impact of tariffs on acquisition agreements - Management confirmed that there is no breakup fee for the company in the acquisition agreement, and they do not foresee reasons to back out of the deal [48] Question: Front end gross outlook - Management noted that the company is different post-COVID and emphasized focusing on gross profit rather than volume [56] Question: Parts and service growth outlook - Management maintained a mid-single-digit growth outlook for parts and service, despite weather-related impacts [60] Question: Price versus car count in parts and service - Management indicated that revenue increases were primarily due to dollar increases rather than traffic increases [89] Question: Supply issues with luxury brands - Management expressed concerns about potential supply issues with luxury brands due to tariff-related shipment holds [90]

Group 1: Trade and Market Impact - Investors showed relief on April 22 due to signs of easing trade tensions, with hints from President Trump and Treasury Secretary Scott Bessent about potential reductions in the 145% tariffs on Chinese goods [1] - The positive developments regarding tariffs have led to a bullish market trend since April 22, with expectations of further gains as more tariff-related good news is anticipated [2] Group 2: Stock Screening and Recommendations - A screening process has been designed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks, incorporating the price/sales ratio as a complementary valuation metric [3] - The screening criteria include a net upgrade in ratings, percentage change in earnings estimates, price-to-sales ratio, stock price above $5, average daily volume over 100,000 shares, and market capitalization in the top 3000 [4][5] Group 3: Featured Stocks - Avis Budget operates as a leading vehicle rental operator with a fleet of nearly 695,000 vehicles, benefiting from strong demand in North America [6] - ABM Industries provides integrated facility solutions and has a strong earnings surprise history, with an average beat of 9.6% over the last four quarters [7] - CVR Energy focuses on renewable energy and petroleum refining, committed to developing renewable biofuels [9] - Delek US Holdings is an independent refiner with significant competitive advantages in the Permian Basin, achieving an average earnings beat of 22.3% [10][11] - Asbury Automotive Group's diversified product mix and e-commerce platform, Clicklane, are driving growth and improving its risk profile [11][12]

Core Viewpoint - The U.S. is experiencing heightened tariff tensions, particularly affecting major trading partners like Canada, Mexico, and China, leading to retaliatory measures and increased trade volatility [1][2]. Group 1: Market Impact - The trade war is expected to create increased volatility and uncertainty in U.S. equity markets, but investors are encouraged to remain engaged with stocks [2]. - A screening process has been developed to identify stocks with improving broker recommendations and upward revisions in earnings estimates over the past four weeks [3]. Group 2: Screening Criteria - The screening criteria include net upgrades in broker ratings, percentage change in earnings estimates, and price-to-sales ratios, focusing on companies in the bottom 10% of this ratio [4][5]. - Additional criteria include a stock price greater than $5, an average daily volume exceeding 100,000 shares, and a market value ranking in the top 3000 [5]. Group 3: Selected Stocks - Cardinal Health (CAH) is a nationwide drug distributor with an expected earnings growth rate of 5.4% for the current year, and its earnings estimates have improved by 1.5% over the last 60 days [6][7]. - DXC Technology is benefiting from its digital business and partnerships, with a 5.4% increase in earnings estimates over the past 60 days and a strong earnings surprise history [7][8]. - Cross Country Healthcare (CCRN) is experiencing growth in its home care staffing business and has a Zacks Rank of 3, with earnings surpassing estimates in three of the last four quarters [9]. - Avnet (AVT) is capitalizing on the defense and data center markets, with a focus on Internet of Things capabilities and a Zacks Rank of 3 [10][11]. - Asbury Automotive Group (ABG) is leveraging its diversified product mix and e-commerce platform for growth, with a recent increase in earnings estimates [11][12].

Financial 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].