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Tuesday, 27 October 2020 20:52

Asbury Automotive Group Announces All-Time Record Third Quarter 2020 Financial Results

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Asbury Automotive Group, Inc., one of the largest automotive retail and service companies in the U.S., reported net income for the third quarter 2020 of $96.2 million ($4.96 per diluted share) and adjusted net income (a non-GAAP measure) of $79.2 million ($4.08 per diluted share).

This compares to net income of $45.0 million ($2.33 per diluted share) in the prior year quarter. Net income for the third quarter 2020 was adjusted for a $24.7 million ($0.96 per diluted share) gain on a dealership divestiture, $1.3 million ($0.05 per diluted share) of acquisition related costs and a $0.7 million ($0.03 per diluted share) real estate related charge. There were no adjustments in the prior year quarter.

 

Total revenue for the third quarter was $1.8 billion, flat from the prior year period; total revenue on a same-store basis was down 5% from the prior year period.

 

"In addition to closing on the largest acquisition in the company's history and increasing our size by 25%, we delivered another very strong quarter reflecting the resilience and the flexibility of our business model. We delivered a record adjusted operating margin of 6.6% and a record low adjusted SG&A as a percentage of gross profit of 61.1% in a 15.4 million SAAR environment," said David Hult, Asbury's president and CEO. "Our continued focus on gross profit combined with disciplined expense management enabled us to deliver the best quarterly results in our company's history with adjusted earnings of $4.08 per share, up 75%."

 

Third Quarter 2020 Highlights

 

  • New gross profit per vehicle up 73% to $2,468
  • Used retail gross profit per vehicle up 43% to $2,116
  • Finance and Insurance gross profit per vehicle up 11% to $1,795
  • Adjusted SG&A as a percentage of gross profit decreased 780 basis points to 61.1%
  • Adjusted Income from operations as percentage of revenue increased 210 basis points to 6.6%
  • Adjusted EPS increased 75%
  • Closed on the acquisition of Park Place Dealerships, adding $1.7 billion of annualized revenue
  • Divested a Lexus dealership with approximately $90 million in annual revenues, as we reached our regional ownership cap due to acquiring two Park Place Lexus stores
  • Ended the quarter with total liquidity of $385 million and a pro forma net leverage ratio of 2.4x

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