Asbury Automotive Group Inc

Announcement: ABG 8-K Special Filing

Part 1: Performance Analysis

Asbury Automotive Group Inc., one of the largest automotive retailers in the United States, has reported solid financial performance during the period. The company's revenue for the twelve-month period ended March 31, 2023, increased by 4.7% to $9.4 billion as compared to the previous year period. Moreover, Asbury Automotive's gross profit for the period increased by 1.6% to $1.55 billion. The company's profit margin for the period remained stable at 4.7%, and net income increased by 10.8% to $443.7 million.

The company's sales and service revenue for the period increased by 2.3% to $2.26 billion, driven by the growth in the parts and service department which increased by 7.8%. Moreover, Asbury Automotive's used vehicle retail segment has witnessed a growth of 3.3%, and new vehicle retail experienced a moderate increase of 0.8%. The company's strong performance in the parts and service department reflects the growing importance of this business segment in the automotive industry.

Asbury Automotive's management has been actively working to improve the company's operational efficiency, optimizing its cost structure and increasing gross profit per unit sold. As per management, the company's ability to leverage scale and cost structure to improve operational efficiencies has been aiding its performance. Moreover, Asbury Automotive has been investing in its digital capabilities, which are expected to boost the company's online presence and enhance customer experience.

Part 2: Forward-Looking Analysis

Asbury Automotive's management expects the automotive industry to continue to face challenges, and the company has implemented plans to mitigate these challenges. The ongoing global semiconductor chip shortage, supply chain disruptions, and inflationary pressures are some of the challenges that are expected to persist in the near future. However, Asbury Automotive has plans to overcome these challenges and improve its future performance.

Asbury Automotive's management has been implementing measures to optimize cost structure and increase gross profit per unit sold, which is expected to drive the company's future performance. Moreover, the strong growth in the parts and service department is expected to continue, and the company has been investing in training and equipping employees to enhance the quality of services provided. The company's ongoing investments in its digital capabilities are expected to strengthen the company's online presence and enhance customer experience, thereby driving future sales growth.

Furthermore, Asbury Automotive's management is confident in the long-term growth prospects of the company. The company has been looking to expand its dealership portfolio through mergers and acquisitions, and management believes that opportunities in this space are expected to remain fruitful in the future. Asbury Automotive's geographic diversity and brand mix are expected to continue to benefit the company, limiting its exposure to regional economic downturns.

In conclusion, Asbury Automotive has reported solid financial performance during the period and has implemented plans to tackle the ongoing industry challenges. The company's focus on operational efficiency, growth in the parts and service department, investments in digital capabilities, and strategic acquisitions are expected to drive the company's future growth. Hence, Asbury Automotive is well-positioned to face the challenges and capitalize on future growth opportunities, supporting its long-term prospects.

XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Asbury Automotive Group Reports Solid Financial Performance; Geared for Future Growth Opportunities.

Asbury Automotive Group, Inc. released its financial report for the first quarter of 2023, showing $683 million in revenue for the period, compared to $707 million in the same quarter last year. The company's net income was $21 million or $0.27 per diluted share, down from $24 million or $0.38 per diluted share in the prior year quarter. The company attributed this decline to divestitures, and there were no non-GAAP adjustments to net income for the period. 

Asbury's gross margin decreased to 19.3%, while operating margin decreased to 7.8%. The same store gross margin decreased to 19.3%, and the same store operating margin decreased to 7.9%. However, the A as a percentage of gross profit increased to 57%. The company's adjusted net leverage ratio decreased to 1.6x at quarter end. 

Asbury's liquidity remained strong, with $1.7 billion in liquidity, including $993 million of cash and cash equivalents, and $697 million of availability under its revolving credit facility. Asbury also repurchased $6.6 million of its common stock during the quarter, leaving $184 million remaining on its share repurchase authorization. 

Going forward, Asbury remains optimistic about its strong operational model and guest-centric approach that will continue to power its profitability as it navigates the changing auto market and macro conditions. The company has a five-year strategic plan that includes plans for growth, cost reduction, and profitability improvement initiatives. 

In summary, while Asbury Automotive Group's financial report showed a decline in net income and margins, the company's liquidity remains strong, and it is optimistic about its future outlook, supported by its strong operational model and strategic initiatives.

Form 8-K - Current report - Item 2.02 Item 9.01

$ABG Reports First Quarter 2023 Financial Results, with $683 Million in Revenue and Optimistic Outlook Despite Lower Net Income and Margins.

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

Asbury Automotive Group: Driving Towards Success##
Current Analysis##: 
Asbury is one of the largest automotive retailers in the US. Gross profit margins increased as a result of robust new vehicle sales & favourable revenue mix. Dealership industry was affected by semiconductor chip shortages. Asbury's TCA segment revenues are derived from the sale of various vehicle protection products. 

Forward-Looking Analysis##:
Asbury's continued growth is dependent on the execution of its balanced automotive retailing and service business strategy. The availability of certain parts and components such as semiconductor chips has limited new vehicle inventory levels. Asbury aims to grow through acquisitions and organic growth. The recent successful acquisition of Larry H. Miller's business shows the company is hungry for growth.

Announcement: ABG 10-K Annual Report

Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend]

Announcement: ABG 8-K Special Filing

Announcement: ABG 8-K Special Filing

Asbury Automotive Group Reports Solid Financial Performance; Geared for Future Growth Opportunities.

Asbury Automotive Group Reports Solid Financial Performance; Geared for Future Growth Opportunities.

$ABG Reports First Quarter 2023 Financial Results, with $683 Million in Revenue and Optimistic Outlook Despite Lower Net Income and Margins.

$ABG Reports First Quarter 2023 Financial Results, with $683 Million in Revenue and Optimistic Outlook Despite Lower Net Income and Margins.

Announcement: ABG 10-K Annual Report

Announcement: ABG 10-K Annual Report

Announcement: ABG SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: ABG SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: ABG SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: ABG SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment