Asbury Automotive Group(US:ABG)2021-04-27 16:50Financial Performance & Growth - Asbury Automotive Group's total revenue for the twelve months ending Dec 31, 2020, was approximately $8 billion, pro forma reflecting acquisitions and divestitures closed in 2020 [13] - In Q1 2021, Asbury's total revenue increased by 36%, and gross profit increased by 40% [50] - Adjusted EPS for Q1 2021 was $4.68, a 160% increase [13, 50] - The company is targeting an average annual top-line growth of 20% from 2021-2025 [20] - The company is targeting EPS growth in excess of top line growth, aiming for 20%+ per year [20] Operational Efficiency & Strategy - Asbury's Q1 2021 adjusted operating margin was 6.1%, an increase of 180 bps [13, 50] - SG&A as a percentage of gross profit decreased by 880 bps to 62.7% in Q1 2021 [13, 50, 53] - The company's strategy focuses on operational excellence, including attracting talent, implementing best practices, and enhancing the guest experience [15] - Asbury is focused on a disciplined capital allocation strategy, including acquisitions and returning capital to shareholders [16, 45] Portfolio & Digital Initiatives - Asbury has acquired approximately $2.5 billion of revenue through strategic acquisitions over the last 3 years [24] - Digital initiatives now represent approximately 80% of the company's advertising spend [29] - Quarterly online service appointment volume has grown 400% since Q1 2016 [31]