Asbury Automotive Group, Inc. has reported its second quarter 2024 results, revealing some significant changes in various financial metrics compared to the same period last year.
The company achieved a record second quarter revenue of $4.2 billion, representing a 13% increase from the second quarter of 2023. However, the gross margin decreased by 185 basis points to 17.2%.
In terms of vehicle sales, new vehicle unit volume increased by 12%, leading to an 11% increase in new vehicle revenue. However, the gross profit from new vehicle sales decreased by 16%. On the other hand, used vehicle retail unit volume increased by 22%, resulting in a 15% increase in used vehicle retail revenue, but a 14% decrease in gross profit from used vehicle retail.
The finance and insurance (F&I) per vehicle retailed (PVR) decreased by 9% to $2,151. Additionally, the parts and service revenue increased by 10%, accompanied by a 16% increase in gross profit.
Comparing same-store performance to the second quarter of 2023, there was a 5% decrease in revenue to $3.5 billion, and a 144 basis point decrease in gross margin to 17.6%. New vehicle unit volume decreased by 6%, resulting in a 6% decrease in new vehicle revenue and a substantial 29% decrease in new vehicle gross profit. Similarly, used vehicle retail unit volume decreased by 2%, leading to a 7% decrease in used vehicle retail revenue and a 27% decrease in gross profit.
The F&I PVR for same stores decreased by 11% to $2,124, while parts and service revenue decreased by 2%, but gross profit increased by 4%.
The company's adjusted net income for the second quarter of 2024, a non-GAAP measure, decreased by 31% year-over-year to $129 million ($6.40 per diluted share) compared to adjusted net income of $188 million ($8.95 per diluted share) in the second quarter of 2023.
In addition, Asbury Automotive Group reported that it repurchased approximately 193,000 shares for $43 million during the second quarter of 2024. Year-to-date through August 1, 2024, the company has repurchased approximately 592,000 shares for $130 million.
The company also highlighted the impact of a cyber incident involving one of its vendors, CDK Global, which negatively impacted earnings per share for the quarter by an estimated $0.95 to $1.15 per diluted share, without considering any potential recoveries related to the incident.
As of June 30, 2024, the company had cash and floorplan offset accounts of $464 million and availability under the used vehicle floorplan line and revolver of $342 million, amounting to a total liquidity of $806 million. The company’s adjusted net leverage ratio, calculated as per its credit facility, was 2.7x at quarter end.
Following these announcements, the company's shares moved -2.2%, and are now trading at a price of $263.43. For the full picture, make sure to review Asbury Automotive's 8-K report.
