Asbury Automotive Group(US:ABG)2024-10-29 10:40Revenue Performance - Revenue for Q3 2024 was $4.2 billion, representing a growth of 16% compared to Q3 2023[1] - Total revenue for Q3 2024 reached $4,236.7 million, a 16% increase from $3,666.2 million in Q3 2023[28] - Total revenue for the three months ended September 30, 2024, was $4,210.5 million, an increase from $3,638.9 million in the same period of 2023, representing a growth of 15.7%[31] - The company’s total revenue for the twelve months ended September 30, 2024, was $12,684.1 million, an increase from $10,991.0 million in the previous twelve months, representing a growth of 15.4%[32] Profitability Metrics - Gross profit for Q3 2024 was $718 million, an increase of 7% year-over-year[4] - The company reported a total gross profit of $718.0 million, a 7% increase from $673.5 million in the same quarter last year[28] - Gross profit margin for total new vehicles decreased to 7.0%, down from 9.0% in Q3 2023, reflecting a decline of 209 basis points[28] - The adjusted EBITDA for the twelve months ended September 30, 2024, was $980.0 million, down from $1,029.5 million for the previous twelve months[33] Earnings and Income - Adjusted EPS for Q3 2024 was $6.35 per diluted share, down 25% from $8.12 per diluted share in Q3 2023[1] - Net income for Q3 2024 was $126.3 million, down 25% from $169.2 million in Q3 2023[23] - For the three months ended September 30, 2024, net income was $126.3 million, a decrease of 5.0% compared to the previous year[35] - For the nine months ended September 30, 2024, net income was $301.5 million, a decrease of 8.6% compared to the previous year[37] Operational Efficiency - Operating margin for Q3 2024 was 5.5%, with an adjusted operating margin of 5.6%[4] - Income from operations decreased by 12% to $232.7 million from $264.7 million in the prior year[23] - Income from operations for the three months ended September 30, 2024, was $232.7 million, down from $264.7 million in the same period last year[35] - SG&A as a percentage of gross profit increased to 64.5% from 57.9% year-over-year[29] Vehicle Sales and Revenue - New vehicle unit volume increased by 16%, with new vehicle revenue also up by 16%[4] - New vehicle revenue reached $2,163.5 million, up 16% from $1,861.9 million year-over-year[23] - Used vehicle revenue totaled $1,294.7 million, reflecting a 16% increase compared to $1,111.7 million in the same quarter last year[23] - Total used vehicle revenue increased by 16% to $1,294.7 million, compared to $1,111.7 million in the same quarter last year[28] Liquidity and Leverage - As of September 30, 2024, the company had total liquidity of $768 million[7] - The transaction adjusted net leverage ratio was 2.9x at the end of the quarter[7] - The adjusted long-term net debt as of September 30, 2024, was $2,870.6 million, compared to $2,851.2 million as of June 30, 2024[33] - The adjusted leverage ratio as of September 30, 2024, was 2.9, compared to 2.7 as of June 30, 2024[33] Shareholder Actions - The company repurchased approximately 394,000 shares for $89 million during Q3 2024[8] Inventory and Supply - Inventory, net, rose to $2,030.8 million, a 15% increase from $1,768.3 million at the end of 2023[24] - Days supply for new vehicle inventory increased to 63 days from 43 days at the end of 2023[25] Market Segmentation - Luxury vehicle sales accounted for 30% of total new vehicle revenue, slightly down from 31% in the previous year[26] - Domestic vehicle sales contributed 29% to total new vehicle revenue, up from 28% in the previous year[26] - Imports accounted for 41% of total new vehicle revenue, unchanged from the previous year[26] - The luxury brand Lexus maintained a 10% share of new vehicle revenue for both periods[26]