The following is a summary of the Asbury Automotive Group, Inc. (ABG) Q1 2024 Earnings Call Transcript:
Financial Performance:
Asbury Automotive Group reported revenues of $4.2 billion in Q1 2024.
Gross profit margin was 17.9%, with SG&A as a percentage of gross profit at 62.5%.
Operating margin stood at 6.3%.
Earnings per share achieved were $7.21 with a reported EBITDA of $259 million.
The company returned capital to shareholders, repurchasing 240,000 shares for $50 million in the quarter.
Business Progress:
Asbury showed ongoing progress in growth strategy and operational efficiency, successful integration of the Coon Group positively contributed to overall growth.
The parts and service business is expected to grow at mid-single digits or higher by the end of the year.
The company sold 2,700 more units compared to Q4 2023 and maintained same-store PVRs quarter-over-quarter with its pre-owned sourcing efforts.
The company continues to utilize capital optimally, making strategic acquisitions and divestitures. A Lexus store in Delaware was divested during Q1 2024.
Expanded online retail with Asburyauto.com platform selling 10,832 units through ClickLane, approximately 16% of overall units in Q1 2024. ClickLane will be deployed across all remaining stores in Florida and Coons later in the year.
Notable brand performance seen especially in imports, with the expectation that new GPU trends could be around $3000 per quarter.
Continued improvement seen in omnichannel customer experience via the ClickLane platform and resilience noted in the luxury customer base, despite model availability variation.
The company warned that prospective Federal Reserve interest rate hikes might negatively affect their business.
More details: Asbury Automotive IR
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