Asbury Automotive Group Inc · NYSE:ABG
Asbury Automotive — Q4 2023 Earnings Presentation
31 slides from Asbury Automotive's earnings presentation, Feb 8, 2024
Slide 1: Fourth Quarter & Full Year 2023 Investor Relations Presentation
FOURTH QUARTER & FULL YEAR 2023 INVESTOR RELATIONS PRESENTATION ABG | Asbury Automotive
Slide 2: Forward Looking Statements
This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, objectives, projections regarding Asbury's fi
Slide 3: Asbury Automotive Group brands and mission
Lark Place NALEY DEALERSHIPS AUTOMOTIVE st Gs» McDavid =o 7, €)KOONS °° » A.Larry H Miller by % @ + Dealerships x % Goggin Ly MIKE'SHAW. ° % CQuRTESY ea ee ims bs) ASBURY % AUTOMOTIVE GROUP () WE ARE ONE | ESTES AUTOMOTIVE STEVINSON = TEAM MEMBERS GUESTS Have a fun, supportive and Be caring inclusiv
Slide 4: Company values
Do what you say you’re going to do We hold ourselves and others accountable, act with integrity, communicate with transparency, and are thorough in our approach Raise the bar We drive towards excellence, demonstrate professionalism, exceed expectations, and anticipate the needs of our guests Invest
Slide 5: Our Agenda
Our Agenda February 8, 2024 01 Company Highlights 02 Fourth Quarter & Full Year 2023 Review 03 Growth Strategy Update 04 Appendix 5 NYSE: ABG
Slide 6: Company Highlights
COMPANY HIGHLIGHTS ABG | Asbury Automotive
Slide 7: Company Highlights
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Company Highlights $37.66 Since 2018, Asbury has(1) $32.60 $27.29 $15.4B $14.8B 115% increase in revenue (17% CAGR) (2) $12.90 288% increase in Adj EPS (31% CAGR) $8.41 $9.46 $9.8B 90% increase in new car dealerships $6.9B $7.2B $7.1B 155 158 (2) 139 Adj EBITDA A
Slide 8: Company Highlights
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Company Highlights $17 BILLION + Total Pro Forma Revenue(1) 1 WA $14.8 BILLION 3 FY23 Total Revenue ID 277,016 15 9 9 New and Used Vehicles Retailed(2) 21 1 2 MD UT 6 IN DE CO 1.3 million CA 14 MO VA 12 6 Shares Repurchased(2) 5 AZ NM 17 SC 2.5x GA 13 Adjusted Ne
Slide 9: Attractive Brand Mix
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Attractive Brand Mix A diversified portfolio with the right brands in the right markets (Based on New Vehicle Revenue – Pro Forma FY23) Luxury Imports Lexus 9% Toyota 18% Mercedes-Benz 8% Honda 8% Luxury Domestic BMW 2% Hyundai 4% 29% 32% Porsche 2% Kia 3% Acura
Slide 10: The Four Key Components
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX The Four Key Components Diversified business mix provides multiple profit streams (FY23) 5% F&I, includes TCA 14% 23% Parts & Service Used 30% New 42% 10% 52% 26% Revenue Gross Profit May not add to 100% due to rounding 10 NYSE: ABG
Slide 11: Fourth Quarter & Full Year 2023
FOURTH QUARTER & FULL YEAR 2023 ABG | Asbury Automotive
Slide 12: Summary
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Summary 2023 Year-Over-Year 4Q Revenue FY Revenue 4Q23 Strategic Highlights Total Total Delivered adjusted EPS of $7.12 and adjusted Same Store Same Store EBITDA of $255M(4) Company(1) Company(1) Total 3% 2% (4%) 0% Repurchased 246,000 shares for $47 million; ave
Slide 13: Operating Income & Margin Trend
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Operating Income & Margin Trend We consistently deliver best-in-class operating efficiency 8.1% 8.3% Adj. Operating Margin 7.3% $1,274 5.7% $1,075 4.6% $793 Adj. Operating Income ($M) $405 $334 2019 2020 2021 2022 2023 Fiscal Year results; see Non-GAAP Reconcilia
Slide 14: Cash Flow Summary
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Cash Flow Summary As a larger company with more robust operating cash flow, we have increased capacity for capital deployment $44.15 Adj. Operating Cash Flow per Share $33.64 $31.52 $987 Adjusted operating cash $22.93 $893 flow of $705 million and adjusted operat
Slide 15: Leverage and Liquidity
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Leverage and Liquidity Deleverage quickly following large acquisitions, providing opportunity for capital deployment – share repurchases and acquisitions Pro Forma Net Leverage Ratio Total Liquidity ($M) $1,723 $1,682 2.5x $1,540 $1,589 1.7x 1.7x 1.7x 1.6x $460 4
Slide 16: Leverage Varies Based on Business Conditions & Environment
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Leverage Varies Based on Business Conditions & Environment Equilibrium leverage target range balances financial flexibility with an efficient capital structure 2.5x Normal Target Range 3.0x NET DEBT/EBITDA Factors Influencing Leverage Top ECONOMIC CYCLE Bottom Hi
Slide 17: Capital Allocation History
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Capital Allocation History We have a track record of prudent capital allocation ‘14–’18 2019 2020 2021 2022 2023 Acquisitions $835M Revenue Acquired $425M Revenue Acquired $1.8B Revenue Acquired $5.8B(2) Revenue Acquired N/A $3B Revenue Acquired ▪ Dealerships in
Slide 18: Growth Strategy Update
GROWTH STRATEGY UPDATE ABG | Asbury Automotive
Slide 19: Delivering on Our Mission to Transform Our Business
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Delivering on Our Mission to Transform Our Business Smart growth strategy powering us to $30B+ in revenue Our Guiding Principles Fulfilling the vision Meeting the future Since starting our journey, we’ve: Affirming our commitment to growth: • Achieve scale throug
Slide 20: Efficient Capital Allocation Drives our Growth and Transformation
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Efficient Capital Allocation Drives our Growth and Transformation Early emphasis on M&A evolves to a more balanced approach to value creation Capital Allocation Peer Comparison (2020 – 2023) Long-term Strategic Focus Category as % of total Capital Allocation (1)
Slide 21: Acquisitions have played a vital part in growing the portfolio
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Acquisitions have played a vital part in And will continue to be a core growing the portfolio… element of our growth End of 2019 End of 2023 Selective pursuit of great assets Acquisitions in strategically important markets (attractive demographics, friendly state
Slide 22: Appendix
APPENDIX ABG | Asbury Automotive
Slide 23: Online Growth: Parts & Service
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Online Growth: Parts & Service Technology enables productivity and transparency, driving higher $s per repair order 318K Online Service Appointments 114K (2) 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 24: Debt Maturity Schedule
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Debt Maturity Schedule Our near-term obligations remain minimal with no significant maturities until 2026 ($ in Millions) $614 Senior Notes $800 Mortgages $600 $405 $445 $166 $32 $87 $72 2024 2025 2026 2027 2028 2029 2030 2031 2032 Note: As of 12/31/2023; Exclude
Slide 25: Non-GAAP Financial Disclosure
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitabi
Slide 26: Non-GAAP Reconciliation
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Non-GAAP Reconciliation Adjusted income from Operations and Adjusted Operating Margin For the Year Ended ($ In millions) December 31, 2019 2020 2021 2022 2023 Adjusted income from operations: Income from operations $ 325.0 $ 370.8 $ 791.8 $ 1,272.6 $ 953.5 Deal d
Slide 27: Non-GAAP Reconciliation
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX For the Three Months ($ In millions) For the Year Ended December 31, Ended December 31, 2018 2019 2020 2021 2022 2023 2023 Non-GAAP Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): Reconciliation Net Incom
Slide 28: Non-GAAP Reconciliation
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX For the Year Ended For the Three Months (In millions, except per share data) December 31, Ended December 31, 2018 2019 2020 2021 2022 2023 2023 Adjusted net income: Net income $ 168.0 $ 184.4 $ 254.4 $ 532.4 $ 997.3 $ 602.5 $ 55.5 Non-GAAP Non-core items - (incom
Slide 29: Non-GAAP Reconciliation
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX ($ In millions) For the Twelve Months Ended December 31, March 31, June 30, September 30, December 31, 2022 2023 2023 2023 2023 Adjusted EBITDA: Calculation of earnings before interest, taxes, Non-GAAP depreciation and amortization ("EBITDA"): Net Income $ 997.3
Slide 30: Non-GAAP Reconciliation
HIGHLIGHTS 4Q & FY23 GROWTH APPENDIX Non-GAAP Reconciliation Adjusted Cash Flow from Operations, Adjusted Free Cash Flow and Adjusted Operating Cash Flow Per Share For the Year Ended (In millions, except per share data) December 31, 2018 2019 2020 2021 2022 2023 Adjusted cash flow from operations: C
Slide 31: Thank You
Thank You https://investors.asburyauto.com 31 NYSE: ABG
Asbury Automotive Group — Q4 2023 Earnings Presentation on 6ix