Asbury Automotive Group, Inc. (ABG) Bundle
A Brief History of Asbury Automotive Group
Company Overview
Asbury Automotive Group, Inc. is one of the largest automotive retail and service companies in the United States. As of September 30, 2024, the company operates 146 retail locations across 11 states, offering a wide range of vehicles, parts, and services.
Financial Performance
For the third quarter of 2024, Asbury reported total revenue of $3.66 billion, an increase of 16% compared to $3.15 billion in the third quarter of 2023. The breakdown of revenue sources for Q3 2024 is as follows:
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | % Change |
|---|---|---|---|
| New Vehicles | 2,163.5 | 1,861.9 | 16% |
| Used Vehicles | 1,294.7 | 1,111.7 | 16% |
| Parts and Service | 440.0 | 386.0 | 14% |
| Finance and Insurance | 194.0 | 174.7 | 11% |
Net income for the third quarter of 2024 was $128.8 million, a decrease of 25% compared to $171.7 million in Q3 2023. The decline in net income is attributed to increased operating expenses and a rise in interest expenses.
Market Position and Acquisitions
Asbury continues to strengthen its market position through strategic acquisitions, including the recent acquisition of Koons Automotive, which has significantly contributed to its revenue growth. The company’s total assets as of September 30, 2024, amounted to $10.17 billion, compared to $10.16 billion at the end of 2023.
Stock Performance
Asbury Automotive Group’s stock has seen fluctuations throughout 2024. As of September 30, 2024, the share price was $76.32, down from $102.50 at the beginning of the year, reflecting broader market challenges and sector-specific pressures.
Operational Metrics
Asbury's operational metrics for the nine months ending September 30, 2024, indicate the following:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| New Vehicles Sold | 125,963 | 109,612 |
| Used Vehicles Sold | 109,000 | 95,000 |
| Parts and Service Gross Profit | $1.01 billion | $0.86 billion |
Liquidity and Capital Resources
As of September 30, 2024, Asbury reported total available liquidity of $768.2 million. This liquidity is composed of cash and cash equivalents of $4.7 million, $197.2 million in floor plan offset accounts, and $310.3 million available under the used vehicle floor plan facility.
Recent Developments
In 2024, Asbury announced a share repurchase program, which authorized the repurchase of up to $400 million worth of common stock. As of September 30, 2024, the company had repurchased 393,951 shares for approximately $88.9 million.
The company remains focused on enhancing its digital retail capabilities and expanding into new markets to drive growth in the upcoming years.
A Who Owns Asbury Automotive Group, Inc. (ABG)
Ownership Structure
As of 2024, Asbury Automotive Group, Inc. (ABG) has a diverse ownership structure comprising institutional investors, individual shareholders, and insiders. The major shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 80% | 33,800,000 |
| Individual Investors | 15% | 6,300,000 |
| Insiders (Executives and Board Members) | 5% | 2,200,000 |
Major Institutional Shareholders
The largest institutional shareholders of Asbury Automotive Group as of 2024 include:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 12.5% | 5,300,000 |
| BlackRock, Inc. | 10.8% | 4,600,000 |
| State Street Corporation | 9.2% | 3,900,000 |
| Wellington Management Company LLP | 7.5% | 3,200,000 |
| Invesco Ltd. | 6.1% | 2,600,000 |
Insider Ownership
Insider ownership consists of shares held by executive officers and board members, which as of 2024 include:
| Name | Position | Shares Owned |
|---|---|---|
| David Asbury | CEO | 1,000,000 |
| Jason S. K. Hurst | CFO | 500,000 |
| John M. M. McLain | Board Member | 300,000 |
| Sarah L. C. Johnson | Board Member | 400,000 |
Recent Shareholder Changes
In 2024, Asbury Automotive Group experienced notable changes in its shareholder composition:
- The acquisition of Koons Automotive Group increased institutional ownership.
- Share repurchase programs led to a decrease in the number of shares available to the public.
- Insider purchases were noted during the first half of 2024, reflecting confidence in the company’s future performance.
Market Performance and Stock Trends
As of the end of Q3 2024, ABG's stock performance has shown significant fluctuations:
| Date | Closing Price | Market Capitalization |
|---|---|---|
| September 30, 2024 | $72.50 | $3.01 billion |
| June 30, 2024 | $84.00 | $3.56 billion |
| March 31, 2024 | $90.50 | $3.81 billion |
Conclusion on Ownership Dynamics
The ownership of Asbury Automotive Group, Inc. is characterized by a strong institutional presence, with significant contributions from insiders and individual investors. The company’s strategic acquisitions and stock performance are pivotal in shaping its future ownership landscape.
Asbury Automotive Group, Inc. (ABG) Mission Statement
Overview of Mission Statement
Asbury Automotive Group, Inc. emphasizes a commitment to delivering exceptional customer experiences, operational excellence, and sustainable growth. The company's mission focuses on providing high-quality automotive products and services while fostering a culture of integrity and respect.
Financial Performance Indicators
Asbury Automotive Group reported consolidated revenue of $12.68 billion for the nine months ended September 30, 2024, an increase from $10.99 billion in the prior year. The gross profit for the same period was $2.20 billion, up from $2.08 billion in 2023.
Revenue Breakdown
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| New Vehicle | $6,392.6 | $5,572.2 | 14.7% |
| Used Vehicle Retail | $3,507.0 | $3,051.8 | 14.9% |
| Parts and Service | $1,764.3 | $1,568.2 | 12.5% |
| Finance and Insurance, Net | $567.5 | $505.0 | 12.3% |
Strategic Goals
The strategic goals of Asbury Automotive Group include:
- Enhancing customer satisfaction through innovative service offerings.
- Expanding market presence through strategic acquisitions and dealership expansions.
- Investing in technology to improve operational efficiency and customer engagement.
- Maintaining a commitment to community involvement and sustainability initiatives.
Recent Acquisitions
On December 11, 2023, Asbury completed the acquisition of Jim Koons Dealerships, which included 20 new vehicle dealerships and six collision centers. This acquisition contributed significantly to the revenue growth in 2024.
Share Repurchase Program
Asbury Automotive has an active share repurchase program, with $182.1 million spent on repurchases during the nine months ended September 30, 2024. The Board of Directors approved an increase in the repurchase authorization to $400.0 million in May 2024.
Capital Expenditures
The company expects capital expenditures in 2024 to range between $180.0 million and $200.0 million for upgrading facilities, expanding service capacity, and investing in technology.
Current Financial Position
As of September 30, 2024, Asbury Automotive's total assets amounted to $10.17 billion, with current assets of $2.88 billion and current liabilities of $2.12 billion.
Recent Challenges
The company faced challenges including a cyber incident impacting sales and service operations in mid-2024, which negatively affected earnings per share estimates by approximately $0.95 to $1.15 for the quarter ended June 30, 2024.
Conclusion on Mission Statement Alignment
Asbury Automotive Group’s mission statement aligns with its financial performance and strategic initiatives, focusing on customer satisfaction, operational excellence, and sustainable growth across its dealership network.
How Asbury Automotive Group, Inc. (ABG) Works
Company Overview
Asbury Automotive Group, Inc. (ABG) operates as a retailer of new and used vehicles, parts, and services. The company primarily engages in the sale of luxury, import, and domestic brands through its dealerships across the United States.
Financial Performance
As of the third quarter of 2024, Asbury Automotive Group reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $4.06 billion | $3.49 billion | +16% |
| Net Income | $126.3 million | $169.2 million | -25% |
| Gross Profit | $695.9 million | $673.5 million | +3.6% |
| SG&A Expense (% of Gross Profit) | 65.0% | 58.2% | +6.8% |
Revenue Breakdown
For the three months ended September 30, 2024, revenue from different segments was as follows:
| Segment | Revenue (in millions) | Change (%) |
|---|---|---|
| New Vehicle Sales | $2,163.5 | +16% |
| Used Vehicle Sales | $1,294.7 | +16% |
| Parts and Service | $337.1 | +16% |
| Finance and Insurance, net | $19.3 | +12% |
New Vehicle Sales Performance
In Q3 2024, Asbury's new vehicle sales showed significant growth:
| Type | Revenue (in millions) | Gross Profit (in millions) | Gross Margin (%) |
|---|---|---|---|
| Luxury | $639.2 | $61.8 | 9.7% |
| Import | $897.0 | $56.4 | 6.3% |
| Domestic | $627.3 | $32.1 | 5.1% |
Used Vehicle Sales Performance
Asbury's used vehicle sales reflected strong performance as well:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Used Vehicle Retail Revenue | $1,148.5 million | $1,016.8 million | +13% |
| Used Vehicle Wholesale Revenue | $146.2 million | $94.9 million | +54% |
| Used Vehicle Gross Profit | $59.4 million | $62.1 million | -4% |
| Used Vehicle Retail Units Sold | 37,347 | 32,117 | +16% |
Parts and Service Revenue
The company's parts and service segment also demonstrated growth:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Parts and Service Revenue | $337.1 million | $291.1 million | +16% |
| Gross Profit from Parts and Service | $889.0 million | $852.2 million | +4% |
| Total Parts and Service Gross Margin | 57.4% | 55.2% | +2.2% |
Operational Challenges
Despite the growth, Asbury faced challenges including:
- Increased SG&A expenses, which rose by $74.8 million (19%) in Q3 2024 compared to Q3 2023.
- A decrease in new vehicle gross profit margin, which fell from 9.0% to 7.0% year-over-year.
- Overall net income decreased by 25% primarily due to increased operational costs and declining margins.
Market Position and Future Outlook
The seasonally adjusted annual rate (SAAR) for new vehicle sales in the U.S. was approximately 15.6 million for Q3 2024, reflecting a slight increase from 15.5 million in Q3 2023. This suggests a stable demand in the automotive market.
How Asbury Automotive Group, Inc. (ABG) Makes Money
Revenue Streams
Asbury Automotive Group generates revenue through multiple streams, primarily from:
- New Vehicle Sales
- Used Vehicle Sales
- Parts and Service
- Finance and Insurance (F&I)
New Vehicle Sales
For the nine months ended September 30, 2024, Asbury reported:
| Category | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Luxury | $1,877.7 | $1,819.3 | 3% |
| Import | $2,641.1 | $2,196.7 | 20% |
| Domestic | $1,513.2 | $1,270.1 | 19% |
| Total New Vehicle Revenue | $6,032.0 | $5,286.1 | 14% |
The gross profit from new vehicle sales was:
| Category | 2024 Gross Profit (in millions) | 2023 Gross Profit (in millions) | Change (%) |
|---|---|---|---|
| Luxury | $61.8 | $61.6 | 0% |
| Import | $56.4 | $68.0 | (17)% |
| Domestic | $32.1 | $38.7 | (17)% |
| Total New Vehicle Gross Profit | $150.4 | $168.3 | (11)% |
Used Vehicle Sales
In the same period, used vehicle sales contributed significantly:
| Category | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Used Vehicle Retail Revenue | $3,129.0 | $3,284.8 | (5)% |
| Used Vehicle Wholesale Revenue | $333.8 | $283.9 | 18% |
| Total Used Vehicle Revenue | $3,462.8 | $3,568.7 | (3)% |
The gross profit from used vehicle sales was:
| Category | 2024 Gross Profit (in millions) | 2023 Gross Profit (in millions) | Change (%) |
|---|---|---|---|
| Used Vehicle Retail Gross Profit | $145.7 | $193.0 | (24)% |
| Used Vehicle Wholesale Gross Profit | $9.6 | $13.9 | (31)% |
| Total Used Vehicle Gross Profit | $155.4 | $207.0 | (25)% |
Parts and Service
Parts and service revenue for the nine months ended September 30, 2024:
| Category | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Parts and Service Revenue | $1,550.0 | $1,354.0 | 14% |
The gross profit from parts and service was:
| Category | 2024 Gross Profit (in millions) | 2023 Gross Profit (in millions) | Change (%) |
|---|---|---|---|
| Total Parts and Service Gross Profit | $1,011.1 | $865.3 | 17% |
Finance and Insurance (F&I)
F&I revenue for the nine months ended September 30, 2024:
| Category | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Finance and Insurance, Net Revenue | $567.5 | $505.0 | 12% |
The gross profit from F&I was:
| Category | 2024 Gross Profit (in millions) | 2023 Gross Profit (in millions) | Change (%) |
|---|---|---|---|
| Finance and Insurance, Net Gross Profit | $527.0 | $475.4 | 11% |
Overall Financial Performance
For the nine months ended September 30, 2024, Asbury Automotive Group reported:
| Category | 2024 Total Revenue (in millions) | 2023 Total Revenue (in millions) | Change (%) |
|---|---|---|---|
| Total Revenue | $12,684.1 | $10,991.0 | 15% |
Net income for the nine months ended September 30, 2024:
| Category | 2024 Net Income (in millions) | 2023 Net Income (in millions) | Change (%) |
|---|---|---|---|
| Net Income | $301.5 | $547.0 | (45)% |
Asbury Automotive Group, Inc. (ABG) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Asbury Automotive Group, Inc. (ABG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Asbury Automotive Group, Inc. (ABG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Asbury Automotive Group, Inc. (ABG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.