NYSE$ABG

Asbury Automotive Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Asbury's financial performance for Q3 2020 reached all-time record levels, marked by significant growth in EPS and adjusted EPS, driven by a focus on gross profit and disciplined expense management.

Asbury Automotive Group reported a record third quarter in 2020, with net income reaching $96.2 million, or $4.96 per diluted share. Adjusted EPS was $4.08, a 75% increase over the prior year. The company closed on the acquisition of Park Place Dealerships, adding $1.7 billion of annualized revenue, and achieved a record adjusted operating margin of 6.6%.

  • New gross profit per vehicle increased by 73% to $2,468.
  • Used retail gross profit per vehicle increased by 43% to $2,116.
  • Finance and Insurance gross profit per vehicle increased by 11% to $1,795.
  • Adjusted SG&A as a percentage of gross profit decreased 780 basis points to 61.1%.

Headline financials

Total Revenue

$1.85B

Previous: $1.84B+0.2%
EPS (adj)

$4.08

Previous: $2.33+75.1%
Used Vehicle Retail Units

20.5K

No prior period
Luxury Avg Gross Profit

$4.61K

No prior period
Import Avg Gross Profit

$1.4K

No prior period
Domestic Avg Gross Profit

$2.82K

No prior period
New Vehicle Avg Gross Profit

$2.47K

No prior period
Capital Expenditures

-$2.3M

Previous: -$28.7M+92.0%
Free Cash Flow

$93.9M

Previous: $16.3M+476.1%
Net Income

$96.2M

Previous: $45M+113.8%
Operating Income

$119M

Previous: $82.2M+44.9%
Gross Profit

$336M

Previous: $293M+14.6%
Cash & Equivalents

$4.1M

Previous: $1.8M+127.8%
Total Assets

$3.53B

Previous: $2.82B+25.4%
Stock-Based Comp

$2.6M

Previous: $3.6M-27.8%

Revenue & EPS history

Asbury · Revenue · Quarterly

$1.85B

Q3 2020+0.2%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Asbury · $1.85B total across 4 segments · Q3 2020

  • New Vehicle Revenue
    $958M
  • Used Vehicle Revenue
    $570M
  • Parts and Service Revenue
    $237M
  • Net Finance and Insurance
    $80.8M

Forward guidance

This press release contains forward-looking statements regarding Asbury's financial position, liquidity, results of operations, market position and dealership portfolio, and other initiatives and future business strategy.

Tailwinds

  • Goals
  • Plans
  • Market conditions
  • Projections regarding Asbury's financial position
  • Liquidity

Headwinds

  • Impact of the COVID-19 pandemic
  • Market factors
  • Asbury's relationships with vehicle manufacturers and other suppliers
  • Acts of God or other incidents which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges
  • Risks associated with Asbury's indebtedness

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.8%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+16.1%

Q1 2022

Best reaction

-12.6%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%+1.5%-2.7%
Q4 2025-7.0%-3.6%-13.6%
Q3 2025+1.2%+0.1%+0.1%
Q1 2025-3.6%-0.9%+0.8%
Q4 2024+11.5%+7.8%-2.2%
Q3 2024+3.3%+1.1%+15.3%
Q2 2024-12.6%-13.7%-6.8%
Q1 2024+0.2%-5.1%+4.4%
Q4 2023+2.5%+3.6%-0.5%
Q3 2023-7.2%-6.3%+4.0%
Q2 2023-4.7%-5.6%-6.6%
Q1 2023-10.1%-6.5%-2.8%
Q4 2022+5.0%+1.8%+2.8%
Q3 2022+1.5%+8.5%+17.4%
Q2 2022+5.0%+6.9%+12.7%
Q1 2022+16.1%+23.1%+17.0%
Q4 2021+14.6%+15.6%+20.7%
Q3 2021-11.1%-12.4%-26.6%
Q2 2021-1.2%+4.3%-5.9%
Q1 2021-1.6%-4.5%-4.1%
Q4 2020-3.0%+2.5%+11.0%
Q3 2020-8.6%-11.7%+3.6%
Q2 2020-4.3%-7.9%-4.6%
Q1 2020-1.7%+5.4%+22.2%
Q4 2019-0.8%-2.9%-2.4%
Q3 2019-6.3%-2.9%+2.8%
Q2 2019+5.3%+2.6%-1.1%
Q1 2019+8.4%+10.6%+6.1%
Q4 2018-4.5%-4.7%-7.5%
Q3 2018+10.7%+13.5%+14.9%
Q2 2018-1.0%-1.7%+9.2%
Q1 2018+4.1%+1.6%+3.7%
Q4 2017+4.4%+5.4%+3.0%
Q3 2017+5.4%+8.7%+14.6%
Q2 2017-5.3%-2.8%-10.7%
Q1 2017-3.0%-7.9%-10.9%
Q4 2016+2.8%+2.8%-3.7%
Q3 2016-6.2%-5.4%+10.6%
Q2 2016-1.4%-0.2%-13.0%
Q1 2016+9.0%
Q4 2015+3.3%
Q3 2015-9.5%
Q2 2015-9.0%
Q1 2015-1.2%
Q4 2014-1.1%
Q3 2014-5.9%
Q2 2014-0.6%
Q1 2014+9.4%
Q4 2013+8.4%
Q3 2013-10.9%
Q2 2013+3.9%
Q1 2013+11.8%
Q4 2012-3.1%
Q3 2012+4.0%
Q2 2012-1.9%
Q1 2012+5.3%
Q1 2011+5.3%
Q4 2009-0.4%
Q4 2011-0.4%
Q3 2011-1.5%
Q3 2010-1.5%
Q2 2010+0.0%
Q4 2010+0.0%
Q2 2011+0.0%
Q1 2010-5.1%

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