Asbury Automotive Group(ABG) - 2024 Q1 - Quarterly Results

Financial Performance - First quarter 2024 net income was $147 million, a decrease of 19% from $181 million in the same quarter of 2023[1] - Revenue reached $4.2 billion, an increase of 17% compared to the first quarter of 2023[5] - Operating margin decreased to 6.3%, down 146 basis points from the previous year[5] - Gross profit for the quarter was $750.0 million, reflecting an 8% increase from $696.2 million[21] - Net income decreased by 19% to $147.1 million, down from $181.4 million in the previous year[21] - Basic earnings per share were $7.24, a decline of 14% from $8.42[21] - Adjusted EBITDA for Q1 2024 was $258.6 million, compared to $293.7 million in Q1 2023, reflecting a decrease of 12%[35] - Income from operations for Q1 2024 was $243.3 million, a decrease of 5% from $256.1 million in Q1 2023[33] Revenue Breakdown - New vehicle revenue reached $2,064.3 million, up 17% from $1,767.7 million year-over-year[21] - Total used vehicle revenue increased by 20% to $1,356.9 million, compared to $1,126.5 million in the prior year[21] - Parts and service revenue grew by 15% to $590.4 million, up from $515.6 million[21] - New vehicle revenue for Q1 2024 was $2,064.3 million, an increase of 16.8% from $1,767.7 million in Q1 2023[33] - Used vehicle revenue for Q1 2024 was $1,356.9 million, up 20.4% from $1,126.5 million in Q1 2023[33] - Parts and service revenue for Q1 2024 was $598.8 million, a 14.1% increase from $524.5 million in Q1 2023[33] Profitability Metrics - New vehicle gross profit decreased by 9% to $162.8 million, down from $178.9 million[27] - Total gross profit rose to $750.0 million, an 8% increase from $696.2 million in the prior year[27] - Total gross profit margin decreased to 17.9%, down from 19.4% year-over-year, reflecting a decline of 158 basis points[27] - Operating expenses increased by 16% to $468.6 million, compared to $403.0 million in the same period last year[27] - SG&A as a percentage of gross profit rose to 62.5%, up from 57.9% in the previous year[27] Cash and Liquidity - As of March 31, 2024, the company had total liquidity of $712 million[7] - Cash and cash equivalents decreased by 37% to $29.0 million from $45.7 million at the end of December 2023[23] - Cash provided by operating activities for Q1 2024 was $177.1 million, slightly up from $171.7 million in Q1 2023[36] - Adjusted cash flow provided by operating activities was $208.7 million in Q1 2024, down from $243.9 million in Q1 2023[36] Shareholder Actions - The company repurchased approximately 240,000 shares for $50 million during the quarter[1][8] Inventory and Liabilities - Inventory increased by 5% to $1,862.9 million compared to $1,768.3 million at the end of December 2023[23] - Total current liabilities decreased by 4% to $2,757.4 million from $2,875.7 million[23]