Asbury Automotive Group, Inc. (NYSE: ABG), a leading U.S. automotive retail and service company, has released its financial results for the second quarter of 2024. The company reported a net income of $28 million ($1.39 per diluted share), marking an 86% decrease from $196 million ($9.34 per diluted share) in the same quarter of 2023. Adjusted net income for the quarter, a non-GAAP measure, fell 31% year-over-year to $129 million ($6.40 per diluted share), down from $188 million ($8.95 per diluted share) in Q2 2023.
David Hult, Asbury’s President and CEO, commented, “Our team has demonstrated remarkable resilience in the face of unprecedented challenges. The CDK cyber incident significantly impacted our results, causing both lost business and one-time recovery expenses. Despite this, we achieved a record 15,201 cars sold through Clicklane, a 33% increase from last year. Looking forward, I am grateful for our team’s innovative approach and dedication to delivering exceptional customer experiences.”
Key Financial Highlights for Q2 2024:
- Total Company Performance:
- Revenue: $4.2 billion, up 13%
- Gross Profit: $731 million, up 2%
- Gross Margin: Decreased by 185 bps to 17.2%
- New Vehicle Unit Volume: Increased by 12%; revenue up 11%; gross profit down 16%
- Used Vehicle Retail Unit Volume: Increased by 22%; revenue up 15%; gross profit down 14%
- Finance and Insurance (F&I) PVR: $2,151, down 9%
- Parts and Service Revenue: Increased by 10%; gross profit up 16%
- SG&A as a Percentage of Gross Profit: 65.2%
- Adjusted SG&A as a Percentage of Gross Profit: 64.8%
- Operating Margin: 2.4%
- Adjusted Operating Margin: 5.6%
- Same Store Performance:
- Revenue: $3.5 billion, down 5%
- Gross Profit: $620 million, down 12%
- Gross Margin: Decreased by 144 bps to 17.6%
- New Vehicle Unit Volume: Decreased by 6%; revenue down 6%; gross profit down 29%
- Used Vehicle Retail Unit Volume: Decreased by 2%; revenue down 7%; gross profit down 27%
- F&I PVR: $2,124, down 11%
- Parts and Service Revenue: Decreased by 2%; gross profit up 4%
- SG&A as a Percentage of Gross Profit: 64.9%
- Adjusted SG&A as a Percentage of Gross Profit: 64.4%
- Operating Margin: 1.9%
- Adjusted Operating Margin: 5.8%
Adjusted net income for Q2 2024 excludes net tax-affected non-cash asset impairments ($5.02 per diluted share), gains from divestitures ($0.13 per diluted share), and losses related to hail damage ($0.11 per diluted share). For Q2 2023, adjustments include gains from divestitures ($0.48 per diluted share), legal settlements ($0.07 per diluted share), and hail damage losses ($0.15 per diluted share).
