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Asbury Automotive Group(ABG) - 2025 Q1 - Quarterly Results
ABGAsbury Automotive Group(ABG)2025-04-29 22:00

Financial Performance - First quarter 2025 net income was 132million(132 million (6.71 per diluted share), a decrease of 10% from 147million(147 million (7.21 per diluted share) in Q1 2024[2] - Revenue for Q1 2025 was 4.1billion,adecreaseof14.1 billion, a decrease of 1% compared to the same period in 2024[10] - Adjusted net income for Q1 2025 was 134 million (6.82perdilutedshare),down96.82 per diluted share), down 9% from 147 million (7.21perdilutedshare)inQ12024[2]−GrossprofitforQ12025was7.21 per diluted share) in Q1 2024[2] - Gross profit for Q1 2025 was 724 million, a decrease of 3% from the previous year[10] - Total revenue for Q1 2025 was 4,148.5million,adecreaseof14,148.5 million, a decrease of 1% compared to 4,201.2 million in Q1 2024[25] - Net income decreased by 10% to 132.1million,withdilutedearningspershareat132.1 million, with diluted earnings per share at 6.71, down 7% from 7.21[25]−AdjustedEBITDAforthetwelvemonthsendedMarch31,2025,was7.21[25] - Adjusted EBITDA for the twelve months ended March 31, 2025, was 963.4 million, down from 982.0millionforthepreviousyear,indicatingadeclineof1.7982.0 million for the previous year, indicating a decline of 1.7%[39] - The diluted EPS for the three months ended March 31, 2025, was 6.71, compared to 6.82forthesameperiodin2024,reflectingadecreaseof1.66.82 for the same period in 2024, reflecting a decrease of 1.6%[40] Revenue Breakdown - New vehicle revenue increased by 4% to 2,138.1 million, while total used vehicle revenue decreased by 9% to 1,235.8million[25]−Newvehicleunitvolumeincreasedby21,235.8 million[25] - New vehicle unit volume increased by 2% in Q1 2025, while used vehicle retail unit volume decreased by 10%[10] - The average selling price of new vehicles rose by 2% to 51,525, while the average selling price of used vehicles increased by 1% to 30,465[33]−Totalunitsalesofnewvehiclesincreasedby230,465[33] - Total unit sales of new vehicles increased by 2% to 41,496 units compared to 40,677 units in the prior year[33] Expenses and Margins - Operating margin for Q1 2025 was 5.6%, with an adjusted operating margin of 5.8%[10] - Selling, general and administrative expenses decreased by 3% to 456.4 million from 468.6millionyear−over−year[33]−Theincomefromoperationsasapercentageofrevenuedecreasedto5.6468.6 million year-over-year[33] - The income from operations as a percentage of revenue decreased to 5.6% from 6.3% in the previous year[33] - The gross margin for total new vehicles decreased by 120 basis points to 6.7% from 7.9%[33] - Selling, general and administrative (SG&A) expenses for the three months ended March 31, 2025, were 456.4 million, with SG&A as a percentage of gross profit at 63.0%[40] Liquidity and Debt - As of March 31, 2025, the company had total liquidity of 964million,includingcashandavailabilityundercreditlines[9]−Cashandcashequivalentsincreasedby80964 million, including cash and availability under credit lines[9] - Cash and cash equivalents increased by 80% to 124.6 million compared to 69.4millioninQ12024[27]−Long−termdebtdecreasedslightlyto69.4 million in Q1 2024[27] - Long-term debt decreased slightly to 3,128.5 million from 3,138.6millioninQ42024[27]−Theadjustedlong−termnetdebtasofMarch31,2025,was3,138.6 million in Q4 2024[27] - The adjusted long-term net debt as of March 31, 2025, was 2,650.7 million, compared to 2,796.9millionasofDecember31,2024,showingareductionof5.22,796.9 million as of December 31, 2024, showing a reduction of 5.2%[39] - The transaction adjusted net leverage ratio as of March 31, 2025, was 2.75, slightly down from 2.85 as of December 31, 2024[39] Inventory and Supply Chain - Inventory decreased by 8% to 1,822.4 million from 1,978.8millioninQ12024[27]−Dayssupplyofnewvehicleinventoryimprovedto44daysfrom49daysinQ42024,whileusedvehicleinventorydayssupplydecreasedto31daysfrom37days[28]AcquisitionsandDivestitures−ThecompanycompletedtwodivestituresinQ12025,contributingestimatedannualizedrevenueof1,978.8 million in Q1 2024[27] - Days supply of new vehicle inventory improved to 44 days from 49 days in Q4 2024, while used vehicle inventory days supply decreased to 31 days from 37 days[28] Acquisitions and Divestitures - The company completed two divestitures in Q1 2025, contributing estimated annualized revenue of 79 million[2] - The company announced a definitive agreement to acquire The Herb Chambers Automotive Group, which has approximately 3billioninannualrevenue[4]OtherFinancialMetrics−Thecompanyreporteda523 billion in annual revenue[4] Other Financial Metrics - The company reported a 52% increase in finance and insurance costs, rising to 13.1 million from 8.6millioninQ12024[25]−Totalnon−coreitemsforthetwelvemonthsendedMarch31,2025,amountedto8.6 million in Q1 2024[25] - Total non-core items for the twelve months ended March 31, 2025, amounted to 155.4 million, compared to 152.4millioninthepreviousyear[39]−TheimpactofdealershipacquisitionsanddivestituresontransactionadjustedEBITDAwasanegative152.4 million in the previous year[39] - The impact of dealership acquisitions and divestitures on transaction adjusted EBITDA was a negative 1.1 million for the twelve months ended March 31, 2025[39] - Cash provided by operating activities for the three months ended March 31, 2025, was 225.0million,anincreasefrom225.0 million, an increase from 177.1 million in the same period of 2024, representing a growth of 27.0%[40] - Adjusted cash flow provided by operating activities for the three months ended March 31, 2025, was 187.4million,comparedto187.4 million, compared to 208.7 million in the same period of 2024, indicating a decline of 10.6%[40]