Asbury Automotive Group Reports 2023 Financial Results

• Revenue of $3.8 billion
• Completed acquisition of Jim Koons Automotive Companies, the ninth-largest privately-owned dealership group in the U.S., with over $3 billion in annual revenue
• Gross profit of $673 million
• SG&A as a percentage of gross profit of 61.5%; adjusted SG&A as a percentage of gross profit, a non-GAAP measure, of 61.0%
• Fourth quarter non-cash asset impairments of $117.2 million or $4.29 per diluted share
• Operating margin of 3.3%; adjusted operating margin, a non-GAAP measure, of 6.4%
• Net income of $56 million; adjusted net income, a non-GAAP measure, of $146 million
• EPS of $2.70 per diluted share; adjusted EPS, a non-GAAP measure, of $7.12 per diluted share
• Adjusted EBITDA, a non-GAAP measure, of $255 million
• Repurchased 246,000 shares for $47 million

February 08, 2024 DULUTH, Ga.--(BUSINESS WIRE)--Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one of the largest automotive retail and service companies in the U.S., reported fourth quarter 2023 net income of $56 million ($2.70 per diluted share), a decrease of 89% from $353 million ($15.95 per diluted share) in fourth quarter 2022. Fourth quarter 2023 results include non-cash asset impairments of $117.2 million or $4.29 per diluted share. Fourth quarter 2022 results include gains on dealership divestitures of $203 million or $6.92 per diluted share. Fourth quarter 2023 adjusted net income, a non-GAAP measure, decreased 28% year-over-year to $146 million ($7.12 per diluted share) compared to adjusted net income of $202 million ($9.12 per diluted share) in fourth quarter 2022. During 2022, the Company completed sixteen divestitures that contributed $683 million in revenue for the year. Four of the divestitures closed in the first quarter, three in the second quarter, and nine in the fourth quarter of 2022.

“2023 was a year of building for the future, including continued integration of acquired businesses, rolling out TCA to 72% of our stores and closing the largest industry acquisition of 2023 in December. None of this would have been possible without the hard work and dedication of our 15,000 team members, including the 2,300 exceptional team members who are now a part of the Asbury family following our recent acquisition of Koons Automotive,” said David Hult, Asbury’s President and Chief Executive Officer. “Our efforts in the 4th quarter and throughout the year better position us for future profitable growth and we continue to drive value for our shareholders. Our quarterly results reflect the industry trends toward normalcy within operations and the headwinds impacting our parts and services business from ongoing integration activities; headwinds we indicated would carry through year-end in our prior quarter commentary.

“With Koons, we have reached a major milestone in our journey to grow the scale and size of our business. Together, we look forward to leveraging our investments in technology to drive our continued focus on operational efficiency and the most guest centric experience in automotive retailing.”

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