Asbury Automotive Group Inc · NYSE:ABG
Asbury Automotive — Q1 2025 Earnings Presentation
43 slides from Asbury Automotive's earnings presentation, Apr 29, 2025
Slide 1: Investor Relations Presentation 2025 First Quarter
A B G | A s b u r y A u t o m o t i v e Investor Relations Presentation 2025 First Quarter
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking to promptly and effectively integrate our strategic and operational strategies and statements" within the meaning of the Private completed transactions and the diversion of initiatives, including Asbury’s five-year Securities Lit
Slide 3: Dealership brands and culture
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: 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. Inves
Slide 5: Agenda: April 29, 2025
Agenda: April 29, 2025 01 Company Highlights ……………………………………………………………………………………………………………………………….…………………………………………….. Page 6 02 1Q25 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 1Q25 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) ($MM) $
Slide 8: Company Highlights
Highlights 1Q25 Growth Appendix Company Highlights $17.1 BILLION Total Revenue (1) 3 ID 320,661 New and Used Vehicles Retailed(1) 15 9 9 18 2 UT MD MD CA CO 6 IN 14 2.75x MO VA Adjusted Net Leverage(2,3) 12 6 4 AZ NM 15 SC $964 MILLION GA Available Liquidity(2) 13 TX 24 $667 MILLION FL LTM Adjusted
Slide 9: Attractive Brand Mix
Highlights 1Q25 Growth Appendix Attractive Brand Mix A diversified portfolio with the right brands in the right markets (Based on New Vehicle Revenue — 1Q25) LUXURY IMPORTS Lexus 10% Toyota 20% Mercedes-Benz 7% Honda 9% BMW 3% Hyundai 5% LUXURY DOMESTIC Land Rover 2% Kia 2% 30% 30% Porsche 2% Subaru
Slide 10: The Four Key Components
Highlights 1Q25 Growth Appendix 5% F&I, includes TCA 14% 24% Parts & Service The Four Used Key Components 30% New Diversified 47% business mix provides multiple profit streams 52% 9% (1Q25) 20% Revenue Gross Profit NYSE: ABG 10 May not add to 100% due to rounding
Slide 11: First Quarter
02 A B G | A s b u r y A u t o m o t i v e First Quarter 2025 NYSE: ABG 11
Slide 12: Summary
Highlights 1Q25 Growth Appendix Summary 2025 Year-Over-Year 1Q25 Revenue Total Company Same Store Total (1%) 1% New Vehicle 4% 6% Used Vehicle Retail (9%) (8%) (1) Finance & Insurance(1) (1%) 0% Parts & Service 0% 2% NYSE: ABG 12 (1) Includes Total Care Auto, or “TCA” (2) See Appendix for Non-GAAP R
Slide 13: Parts & Service
Highlights 1Q25 Growth Appendix Parts & Service Driving profitable growth 1Q25 Same Store Drivers1 5% Same Store Parts & Service Gross Profit Growth, YoY 12% 11% 9% Combined Customer Pay & Warranty 7% 19% 19% Collision 16% Wholesale Parts Warranty 6% 21% Customer Pay Customer Pay Warranty 63% 53% (5
Slide 14: Parts & Service: By Powertrain
Highlights 1Q25 Growth Appendix Parts & Service: By Powertrain 1Q25 Proportion of RO Count by Powertrain 1Q25 Dollars per RO by Powertrain ICE & Hybrid: 98% PHEV: 1% $861 BEV: 1% $544 $570 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 1Q25 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 serviced le
Slide 16: F&I Profit Per Vehicle Retailed (PVR)
Highlights 1Q25 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: $2,274 TCA deferral $11 headwind, YoY 1/3 2/3 $2,273 $2,263 Insurance Product Reserve TC
Slide 17: Total Care Auto: Overview
Highlights 1Q25 Growth Appendix Total Care Auto: Overview Strategic, standalone asset with four decades of serving guests 1.6M+ 95% A Rated $400M+ Vehicle Sold Active Contracts Claims Serviced by Increased from A- Investment & (Dealership) Asbury Dealerships Post-Acquisition Cash Balance Service Dri
Slide 18: Total Care Auto: Estimated Roadmap for Growth
Highlights 1Q25 Growth Appendix Total Care Auto: Estimated Roadmap for Growth Subject to change due to impact and/or duration of tariff policies FY25 through FY29 estimates under review pending full visibility into tariff impact Pre-Tax Estimates ($ in millions) 2024 1Q25 2025 E 2026 E 2027 E 2028 E
Slide 19: Operating Income & Margin Trend
Highlights 1Q25 Growth Appendix Operating Income & Margin Trend We consistently deliver best in class operating efficiency 8.1% 8.3% 7.3% Adj. Operating Margin 6.3% 5.7% 5.8% 5.8% 4.6% $1,274 $1,075 $997 Adj. Operating Income ($M) $793 $405 $334 $263 $241 2019 2020 2021 2022 2023 2024 1Q24 1Q25 NYSE
Slide 20: Cash Flow Summary
Highlights 1Q25 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 $10.23 $9.51 $632 $556 $563 $526 $443 $396 $2
Slide 21: Leverage and Liquidity
Highlights 1Q25 Growth Appendix Leverage and Liquidity Robust cash flow providing opportunity for capital deployment — share repurchases and acquisitions Transaction Adjusted Net Leverage Ratio Total Liquidity ($M) 2.87x 2.85x 2.70x 2.75x 2.57x $964 $806 $828 $768 $712 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24
Slide 22: Leverage Varies Based on Business Conditions & Environment
Highlights 1Q25 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 High MA
Slide 23: Capital Allocation History
Highlights 1Q25 Growth Appendix Capital Allocation History We have a track record of prudent capital allocation 2014–2020 2021 2022 2023 2024 1Q25 YTD Acquisitions $3.1B Revenue Acquired $5.8B(2) Revenue Acquired N/A $2.7B (4) Revenue Acquired N/A N/A ▪ Dealerships in ▪ LHM & TCA – 7 States ▪ Jim Ko
Slide 24: 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 24
Slide 25: Overview of Pending Transaction
Highlights 1Q25 Growth Appendix Overview of Pending Transaction Flagship Motor Cars Ford of Westborough INDIVIDUAL-OWNED business since 1985 16th largest private dealership group by revenue(1)(2) 33 new vehicle dealerships & 52 new vehicle franchises Audi Brookline Lexus of Hingham Leading market sh
Slide 26: Pending Herb Chambers Acquisition - Details
Highlights 1Q25 Growth Appendix Pending Herb Chambers Acquisition - Details Subject to OEM approvals and closing terms Transaction valued at ~$1.34B • $750M of Blue Sky plus inventory and fixed assets to be acquired at close • $590M in real estate & improvements Expected to be financed through combi
Slide 27: Strategic Expansion into Attractive Auto Market
Highlights 1Q25 Growth Appendix Strategic Expansion into Attractive Auto Market Subject to OEM approvals and closing terms Net Growth to Asbury : (1) 3 Expands footprint into +31 31 NEW CAR DEALERSHIPS ID MA 2 stable New England RI market 15 9 9 18 2 +50 MD UT 6 FRANCHISES CA CO IN 14 ~$20 BILLION M
Slide 28: Rebalancing our Portfolio Following Acquisition
Highlights 1Q25 Growth Appendix Rebalancing our Portfolio Following Acquisition A diversified portfolio with the right brands in the right markets (Based on New Vehicle Revenue — FY24 Pro Forma) Pro Forma Brand Mix LUXURY DOMESTIC 30% 29% Asbury FY24 DOMESTIC LUXURY 27% IMPORTS 34% 41% DOMESTIC 12%
Slide 29: Asbury Brand Mix Recomposition Post Acquisition
Highlights 1Q25 Growth Appendix Asbury Brand Mix Recomposition Post Acquisition (Estimate based on New Vehicle Revenue — FY24 Pro Forma(1)) 18% 12% 10% 9% 9% 8% 7% 7% 5% 4% 3% 3% 2% 2% 2% Other Luxury Other Import Luxury: 34% Import: 39% Domestic: 27% NYSE: ABG 29 (1) Proforma of FY24 Asbury results
Slide 30: Delivering on Our Mission to Transform Our Business
Highlights 1Q25 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 through M&A
Slide 31: Appendix
04 A B G | A s b u r y A u t o m o t i v e Appendix NYSE: ABG 31
Slide 32: TCA: Simplified Accounting Example—Cash View
Highlights 1Q25 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 (~25% of
Slide 33: TCA: Simplified Accounting Example—GAAP View
Highlights 1Q25 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 on Cla
Slide 34: Segment Reporting
Highlights 1Q25 Growth Appendix Segment Reporting Three Months Ended March 31, 2024 TCA After Three Months Ended March 31, 2025 TCA After 1Q24 & 1Q25 Dealerships Eliminations Total Company Dealerships Eliminations Total Company Revenue New $ 2,064.3 $ - $ 2,064.3 $ 2,138.1 $ - $ 2,138.1 Used 1,356.9
Slide 35: Online Growth: Parts & Service
Highlights 1Q25 Growth Appendix Online Growth: Parts & Service Technology enables productivity and transparency, driving higher $s per repair order 384K Online Service Appointments 121K 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 We believ
Slide 36: Debt Maturity Schedule
Highlights 1Q25 Growth Appendix Debt Maturity Schedule Our near-term obligations remain minimal with no significant maturities until 2026 ($ in Millions) Senior Notes $800 Mortgages $571 $600 $405 $445 $157 $69 $61 $10 2025 2026 2027 2028 2029 2030 2031 2032 NYSE: ABG 36 Note: As of 3/31/2025; Exclu
Slide 37: Non-GAAP Financial Disclosure and Reconciliation
Non-GAAP Financial Disclosure and Reconciliation In addition to evaluating the financial condition and results unusual or non-recurring nature. Because these non-core, divestiture(s) is excluded from Transaction adjusted EBITDA. of our operations in accordance with GAAP, from time to time unusual or
Slide 38: Non-GAAP Reconciliation
Highlights 1Q25 Growth Appendix Non-GAAP Reconciliation Adjusted income from Operations and Adjusted Operating Margin For the Year Ended ($ In millions) For the Three Months Ended March 31, December 31, 2019 2020 2021 2022 2023 2024 2024 2025 Adjusted income from operations: Income from operations $
Slide 39: Non-GAAP Reconciliation
Highlights 1Q25 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 $ 997.3
Slide 40: Non-GAAP Reconciliation
Highlights 1Q25 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 $ 997.3
Slide 41: Non-GAAP Reconciliation
Highlights 1Q25 Growth Appendix ($ In millions) For the Twelve Months Ended March 31, June 30, September 30, December 31, March 31, 2024 2024 2024 2024 2025 Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): Net Income $ 568.2 $ 400.0 $ 357.1 $
Slide 42: Non-GAAP Reconciliation
Highlights 1Q25 Growth Appendix Non-GAAP Reconciliation Adjusted Cash Flow from Operations, Adjusted Free Cash Flow and Adjusted Operating Cash Flow Per Share For the Twelve For the Year Ended For the Three Months Ended March 31, Months Ended (In millions, except per share data) December 31, March 3
Slide 43: Thank You
Thank You investors.asburyauto.com NYSE: ABG 43
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