Asbury Automotive Group Inc · NYSE:ABG
Asbury Automotive — Q4 2024 Earnings Presentation
40 slides from Asbury Automotive's earnings presentation, Jan 30, 2025
Slide 1: Investor Relations Presentation 2024 Fourth Quarter
A B G | A s b u r y A u t o m o t i v e Investor Relations Presentation 2024 Fourth Quarter
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release contains "forward-looking to promptly and effectively integrate strategic plan; our ability to leverage gains statements" within the meaning of the Private completed transactions and the diversion of from Asbury’s dealership portfolio; our ability to Sec
Slide 3: We Are One Team: Dealership Brands and Values
Park Pace NALEY DEALERSHIPS AUTOMOTIVE G* McDavid _<° "Ong © KOONS Co) + Larry H Mill “ ¢ s ebay millers % Goggin ku v MIKE'SHAW, ° i C@urtTesy ee = bs) STEVINSON == “WE ARE ONE | ESTES AUTOMOTIVE TEAM MEMBERS GUESTS Have a fun, supportive and Be caring YS reece orem, professoncswrostive = CROWN mem
Slide 4: Core 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. Inves
Slide 5: Agenda: January 30, 2025
Agenda: January 30, 2025 01 Company Highlights ……………………………………………………………………………………………………………………………….…………………………………………….. Page 6 02 4Q and FY2024 Review ……………………………………………………………………………………………………………………………….…………………………………………….. Page 11 03 Growth Strategy ……………………………………………………………………………………………………………………………….……………………
Slide 6: Company Highlights
01 A B G | A s b u r y A u t o m o t i v e Company Highlights NYSE: ABG 6
Slide 7: Company Highlights: Asbury Since 2019
Highlights 4Q & FY24 Growth Appendix Company Highlights Asbury, Since 2019(1) $37.66 • 138% increase in revenue (19% CAGR) $32.60 $27.29 $27.24 • 188% increase in Adj EPS(2) (24% CAGR) $17.2B • 73% increase in new car dealerships $15.4B $14.8B $12.90 $9.46 Adj EBITDA(2) Adj Op. Cash Flow(2) ($MM) ($
Slide 8: Company Highlights
Highlights 4Q & FY24 Growth Appendix Company Highlights $17.2 BILLION Total Revenue (1) 3 323,916 ID New and Used Vehicles Retailed(1) 15 9 2 19 9 830,000 UT MD Shares Repurchased(1) MD 6 IN CA CO 14 MO VA 12 6 5 2.85x AZ NM 15 SC Adjusted Net Leverage(2,3) 13 GA TX $828 MILLION 24 Available Liquidi
Slide 9: Attractive Brand Mix
Highlights 4Q & FY24 Growth Appendix Attractive Brand Mix A diversified portfolio with the right brands in the right markets (Based on New Vehicle Revenue — FY24) LUXURY IMPORTS Lexus 10% Toyota 19% Mercedes-Benz 8% Honda 9% BMW 3% Hyundai 5% LUXURY DOMESTIC Land Rover 2% Nissan 2% 30% 29% Porsche 2
Slide 10: The Four Key Components
Highlights 4Q & FY24 Growth Appendix 4% F&I, includes TCA 14% 24% Parts & Service The Four Used Key Components 30% New Diversified 46% business mix provides multiple profit streams 51% 8% (FY24) 22% Revenue Gross Profit NYSE: ABG 10 May not add to 100% due to rounding
Slide 11: Fourth Quarter and Full Year 2024
02 A B G | A s b u r y A u t o m o t i v e Fourth Quarter and Full Year 2024 NYSE: ABG 11
Slide 12: Summary
Highlights 4Q & FY24 Growth Appendix Summary 2024 Year-Over-Year 4Q24 FY24 Total Same Total Same Revenue Company Store Company Store 4Q24 Strategic Highlights Total 18% 6% 16% (1%) Parts & Service gross profit growth of 19% New Vehicle 19% 8% 16% - Same store adjusted SG&A as a % of gross profit of
Slide 13: Parts & Service
Highlights 4Q & FY24 Growth Appendix Parts & Service Driving profitable growth 4Q24 Same Store Drivers1 11% 11% Same Store Parts & Service Gross Profit Growth, YoY 11% 7% 20% 13% 26% 18% Collision 15% Wholesale Parts Warranty Customer Pay Warranty Customer Pay 63% (5%) (6%) 53% Wholesale Parts Colli
Slide 14: Parts & Service: By Powertrain
Highlights 4Q & FY24 Growth Appendix Parts & Service: By Powertrain 4Q24 Proportion of RO Count by Powertrain 4Q24 Dollars per RO by Powertrain ICE & Hybrid: 98% PHEV: 1% $866 BEV: 1% $528 $590 ICE & Hybrid PHEV BEV NYSE: ABG 14 Same store basis; may not add to 100% due to rounding
Slide 15: Parts & Service: Average Mileage Serviced
Highlights 4Q & FY24 Growth Appendix Parts & Service: Average Mileage Serviced Extending relationships with our guests Average Vehicle Mileage in our Service Drives A key metric for the health of our service department, Customer Pay mileage, continues to trend upward Increased average mileage servic
Slide 16: F&I Profit Per Vehicle Retailed (PVR)
Highlights 4Q & FY24 Growth Appendix F&I Profit Per Vehicle Retailed (PVR) Attractive insurance product offerings to support our guests Same Store F&I PVR Historical & Current F&I PVR Composition Ex-TCA Headwind PVR: $2,278 TCA deferral $40 headwind, YoY 1/3 2/3 $2,310 $2,238 Insurance Product Reser
Slide 17: Total Care Auto: Estimated Roadmap for Growth
Highlights 4Q & FY24 Growth Appendix Total Care Auto: Estimated Roadmap for Growth Strategic and unique asset positions us for long-term growth Pre-Tax Estimates ($ in millions) 2024 2025 2026 2027 2028 2029 TCA Standalone Pre-Tax Income $73 $70 $65 $100 $150 $150+ Non-Cash Deferral $6 ($62) ($125)
Slide 18: Operating Income & Margin Trend
Highlights 4Q & FY24 Growth Appendix Operating Income & Margin Trend We consistently deliver best in class operating efficiency 8.1% 8.3% 7.3% Adj. Operating Margin 5.7% 5.8% 4.6% $1,274 $1,075 $997 Adj. Operating Income ($M) $793 $405 $334 2019 2020 2021 2022 2023 2024 NYSE: ABG 18 See Appendix for
Slide 19: Cash Flow Summary
Highlights 4Q & FY24 Growth Appendix Cash Flow Summary As a larger company with more robust operating cash flow, we have increased capacity for capital deployment $44.15 $33.64 $34.40 Adj. Operating Cash $31.52 Flow per Share $987 $22.93 $893 $14.63 $705 $688 $632 $556 $563 $526 $443 $396 $282 $225
Slide 20: Leverage and Liquidity
Highlights 4Q & FY24 Growth Appendix Leverage and Liquidity Robust cash flow providing opportunity for capital deployment — share repurchases and acquisitions Transaction Adjusted Net Leverage Ratio Total Liquidity ($M) 2.87x 2.85x $828 $806 2.70x $768 2.54x 2.57x $712 $460 4Q23 1Q24 2Q24 3Q24 4Q24
Slide 21: Leverage Varies Based on Business Conditions & Environment
Highlights 4Q & FY24 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 22: Capital Allocation History
Highlights 4Q & FY24 Growth Appendix Capital Allocation History We have a track record of prudent capital allocation 2014– 2020 2021 2022 2023 2024 2019 Acquisitions $1.3B Revenue Acquired $1.8B Revenue Acquired $5.8B(2) Revenue Acquired N/A $2.7B (4) Revenue Acquired N/A ▪ Dealerships in ▪ Elway CD
Slide 23: Growth Strategy
03 A B G | A s b u r y A u t o m o t i v e Growth Strategy NYSE: ABG 23
Slide 24: Delivering on Our Mission to Transform Our Business
Highlights 4Q & FY24 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 25: Efficient Capital Allocation Drives our Growth and Transformation
Highlights 4Q & FY24 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 26: Acquisitions
Highlights 4Q & FY24 Growth Appendix Acquisitions Have played a vital part in growing the portfolio … And will continue to be a core element of our growth. End of 2019 End of 4Q 2024 Selective Pursuit of Great Assets Acquisitions in strategically important markets (attractive demographics, friendly
Slide 27: Appendix
04 A B G | A s b u r y A u t o m o t i v e Appendix NYSE: ABG 27
Slide 28: TCA: Simplified Accounting Example—Cash View
Highlights 4Q & FY24 Growth Appendix TCA: Simplified Accounting Example—Cash View Example Fact Pattern • Customer Price of Insurance Contract: $2,500 • TCA Cost: • Contract Term: 5 Years o Overhead Costs: $250 • Dealership profit: $1,500 o Claims Reserve: $525 • Commission Paid to Sales Employee (~2
Slide 29: TCA: Simplified Accounting Example—GAAP View
Highlights 4Q & FY24 Growth Appendix TCA: Simplified Accounting Example—GAAP View Math for 5 Year Life of Contract Example Fact Pattern Revenue $2,500 • Customer Price of Insurance Contract: $2,500 • TCA Cost: Claim Yr 3 ($525) • Contract Term: 5 Years o Overhead Costs: $250 Fixed Ops Gross Profit o
Slide 30: Segment Reporting
Highlights 4Q & FY24 Growth Appendix Segment Reporting FY24 and FY23 ($ in millions) Twelve Months Ended December 31, 2023 Twelve Months Ended December 31, 2024 TCA After Total TCA After Total Dealerships Eliminations Company Dealerships Eliminations Company Revenue New $ 7,630.7 $ - $ 7,630.7 $ 8,8
Slide 31: Online Growth: Parts & Service
Highlights 4Q & FY24 Growth Appendix Online Growth: Parts & Service Technology enables productivity and transparency, driving higher $s per repair order 401K Online Service Appointments 140K 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 We b
Slide 32: Debt Maturity Schedule
Highlights 4Q & FY24 Growth Appendix Debt Maturity Schedule Our near-term obligations remain minimal with no significant maturities until 2026 ($ in Millions) Senior Notes Mortgages $800 $580 $600 $405 $445 $159 $70 $62 2025 2026 2027 2028 2029 2030 2031 2032 NYSE: ABG 32 Note: As of 12/31/2024; Exc
Slide 33: Non-GAAP Financial Disclosure and Reconciliation
Non-GAAP Financial Disclosure and Reconciliation In addition to evaluating the financial condition and results unusual or non-recurring nature. Because these non-core, divestiture(s) is excluded from Transaction adjusted EBITDA. of our operations in accordance with GAAP, from time to time unusual or
Slide 34: Non-GAAP Reconciliation
Highlights 4Q & FY24 Growth Appendix Non-GAAP Reconciliation Adjusted income from Operations and Adjusted Operating Margin For the Year Ended ($ In millions) December 31, 2019 2020 2021 2022 2023 2024 Adjusted income from operations: Income from operations $ 325.0 $ 370.8 $ 791.8 $ 1,272.6 $ 953.5 $
Slide 35: Non-GAAP Reconciliation
Highlights 4Q & FY24 Growth Appendix Non-GAAP Reconciliation Adjusted EBITDA ($ In millions) For the Year Ended December 31, 2019 2020 2021 2022 2023 2024 Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): Net Income $ 184.4 $ 254.4 $ 532.4 $ 9
Slide 36: Non-GAAP Reconciliation
Highlights 4Q & FY24 Growth Appendix Non-GAAP Reconciliation Adjusted Net Income and Adjusted EPS For the Year Ended For the Three Months (In millions, except per share data) December 31, Ended December 31, 2019 2020 2021 2022 2023 2024 2024 Adjusted net income: Net income $ 184.4 $ 254.4 $ 532.4 $
Slide 37: Non-GAAP Reconciliation
Highlights 4Q & FY24 Growth Appendix ($ In millions) For the Twelve Months Ended December 31, March 31, June 30, September 30, December 31, 2023 2024 2024 2024 2024 Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): Net Income $ 602.5 $ 568.2 $
Slide 38: Non-GAAP Reconciliation
Highlights 4Q & FY24 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, 2019 2020 2021 2022 2023 2024 Adjusted cash flow from operations: C
Slide 39: Non-GAAP Reconciliation
Highlights 4Q & FY24 Growth Appendix For the 3 Months Ended ($ In millions) December 31, Non-GAAP 2023 2024 Reconciliation Selling, general and administrative (Same Store) $ 389.1 $ 408.6 Fixed asset write-off $ (1.1) — Same Store Adjusted SG&A Hurricane Milton losses — (6.4) Non-GAAP adjusted SG&A
Slide 40: Thank You
Thank You investors.asburyauto.com NYSE: ABG 40
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