Asbury Automotive Group Inc · NYSE:ABG
Asbury Automotive — Q3 2024 Earnings Presentation
37 slides from Asbury Automotive's earnings presentation, Oct 29, 2024
Slide 1: Investor Relations Presentation 2024 Third Quarter
A B G | A s b u r y A u t o m o t i v e Investor Relations Presentation 2024 Third Quarter
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release contains "forward-looking to promptly and effectively integrate leverage gains from its dealership portfolio, statements" within the meaning of the Private completed transactions and the diversion of Asbury's ability to capitalize on opportunities to Sec
Slide 3: Dealership brands and company 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 professionalistm, exceed expectations, and antitipcate the needs of our guests. Inv
Slide 5: Agenda: October 29, 2024
Agenda: October 29, 2024 01 Company Highlights ……………………………………………………………………………………………………………………………….…………………………………………….. Page 6 02 Third Quarter 2024 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 2018
Highlights Quarter 3 Growth Appendix Company Highlights Asbury, Since 2018(1) • 115% increase in revenue (17% CAGR) $37.66 $32.60 • 288% increase in Adj EPS(2) (31% CAGR) $27.29 $15.4B • 90% increase in new car dealerships $14.8B $12.90 Adj Op. Cash Flow(2) Adj EBITDA(2) $8.41 $9.46 $9.8B ($MM) ($MM
Slide 8: Company Highlights
Highlights Quarter 3 Growth Appendix Company Highlights $16.5 BILLION Total Revenue (1) 3 312,008 ID New and Used Vehicles Retailed(1) 15 9 2 20 9 1.1 million UT MD Shares Repurchased(1) MD 6 IN CA CO 14 MO VA 12 6 5 2.9x AZ NM 15 SC Adjusted Net Leverage(2,3) 13 GA TX $768 MILLION 24 Available Liqu
Slide 9: Attractive Brand Mix
Highlights Quarter 3 Growth Appendix Attractive Brand Mix A diversified portfolio with the right brands in the right markets (Based on New Vehicle Revenue — YTD 3Q24) LUXURY IMPORTS Lexus 10% Toyota 20% Mercedes-Benz 7% Honda 9% BMW 2% Hyundai 5% LUXURY DOMESTIC Land Rover 2% Nissan 2% 29% 29% Porsc
Slide 10: The Four Key Components
Highlights Quarter 3 Growth Appendix 4% F&I, includes TCA 14% 24% Parts & Service The Four Used Key Components 31% New Diversified 46% business mix provides multiple profit streams 50% 9% (YTD 3Q24) 21% Revenue Gross Profit NYSE: ABG 10 May not add to 100% due to rounding
Slide 11: Third Quarter 2024
02 A B G | A s b u r y A u t o m o t i v e Third Quarter 2024 NYSE: ABG 11
Slide 12: Summary
Highlights Quarter 3 Growth Appendix Summary Q3 2024 Year-Over-Year Revenue Total Company Same Store Total 16% (2%) Strategic Highlights New Vehicle 16% - Parts & Service gross profit growth of 16% Same store adjusted SG&A as a % of gross profit Used Vehicle Retail 13% (8%) of 63.8%(2) Adjusted EPS
Slide 13: Parts & Service
Highlights Quarter 3 Growth Appendix Parts & Service Driving profitable growth 3Q24 Same Store Drivers1 11% 11% 4% Same Store Parts & Service Gross Profit Growth, YoY 8% 20% 8% 14% 18% Collision 15% Wholesale Parts Warranty Customer Pay Warranty Customer Pay 63% (2%) (10%) 53% Wholesale Parts Collis
Slide 14: Parts & Service: By Powertrain
Highlights Quarter 3 Growth Appendix Parts & Service: By Powertrain 3Q24 Proportion of RO Count by Powertrain 3Q24 Dollars per RO by Powertrain ICE & Hybrid: 98% PHEV: 1% $865 BEV: 1% $629 $517 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 Quarter 3 Growth Appendix Parts & Service: Average Mileage Serviced Extending relationships with our guests Average Customer Pay Vehicle Mileage in our Service Drives A key metric for the health of our service department continues to trend upward Increased average mileage serviced leads t
Slide 16: F&I Profit Per Vehicle Retailed (PVR)
Highlights Quarter 3 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: $2,162 TCA deferral $51 headwind, YoY 1/3 2/3 $2,219 $2,111 Insurance Product Reser
Slide 17: Total Care Auto: Timeline and Non-Cash Deferral Impact
Highlights Quarter 3 Growth Appendix Total Care Auto: Timeline and Non-Cash Deferral Impact Consolidated TCA Pre-Tax Income Estimates 2024 2025 2026 2027 2028 2029 2030 $70M–$80M $0M–$40M Returning to Steady State Based on Store Count Roll-off of Legacy Contracts Acquired from M&A TCA Rollout for Fl
Slide 18: Operating Income & Margin Trend
Highlights Quarter 3 Growth Appendix Operating Income & Margin Trend We consistently deliver best in class operating efficiency 8.3% 7.5% 8.1% 7.3% Adj. Operating Margin 5.8% 5.7% 4.6% $1,274 $1,075 Adj. Operating Income ($M) $830 $793 $738 $405 $334 2019 2020 2021 2022 2023 YTD 3Q23 YTD 3Q24 NYSE:
Slide 19: Cash Flow Summary
Highlights Quarter 3 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 Adj. Operating Cash $31.52 Flow per Share $987 $24.33 $24.21 $22.93 $893 $14.63 $705 $632 $556 $563 $514 $487 $443 $437 $39
Slide 20: Leverage and Liquidity
Highlights Quarter 3 Growth Appendix Leverage and Liquidity Robust cash flow providing opportunity for capital deployment — share repurchases and acquisitions Transaction Adjusted Net Leverage Ratio Total Liquidity ($M) $1,682 2.9x 2.7x 2.5x 2.6x 1.7x $806 $768 $712 $460 3Q23 4Q23 1Q24 2Q24 3Q24 3Q2
Slide 21: Leverage Varies Based on Business Conditions & Environment
Highlights Quarter 3 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 Quarter 3 Growth Appendix Capital Allocation History We have a track record of prudent capital allocation 2014– 2020 2021 2022 2023 2024 2019 YTD 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 ▪ Elwa
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 Quarter 3 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 Quarter 3 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 Quarter 3 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 3Q 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
Slide 28: Online Growth: Parts & Service
Highlights Quarter 3 Growth Appendix Online Growth: Parts & Service Technology enables productivity and transparency, driving higher $s per repair order 396K Online Service Appointments 137K 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 We b
Slide 29: Debt Maturity Schedule
Highlights Quarter 3 Growth Appendix Debt Maturity Schedule Our near-term obligations remain minimal with no significant maturities until 2026 ($ in Millions) Senior Notes Mortgages $800 $589 $600 $405 $445 $160 $72 $63 2025 2026 2027 2028 2029 2030 2031 2032 NYSE: ABG 29 Note: As of 9/30/2024; Excl
Slide 30: Non-GAAP Financial Disclosure and Reconciliation
Non-GAAP Financial Disclosure and Reconciliation In addition to evaluating the financial condition and results unusual or non-recurring nature. Because these non-core, divestiture(s) is excluded from Transaction adjusted EBITDA. of our operations in accordance with GAAP, from time to time unusual or
Slide 31: Non-GAAP Reconciliation
Highlights Quarter 2 Growth Appendix Non-GAAP Reconciliation Adjusted income from Operations and Adjusted Operating Margin For the Year Ended ($ In millions) For the Nine Months Ended September 30, December 31, 2018 2019 2020 2021 2022 2023 2023 2024 Adjusted income from operations: Income from oper
Slide 32: Non-GAAP Reconciliation
Highlights Quarter 2 Growth Appendix Non-GAAP Reconciliation Adjusted EBITDA For the Three Months ($ In millions) For the Year Ended December 31, Ended June 30, 2018 2019 2020 2021 2022 2023 2024 Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"
Slide 33: Non-GAAP Reconciliation
Highlights Quarter 2 Growth Appendix For the Year Ended For the Three Months (In millions, except per share data) December 31, Ended September 30, 2018 2019 2020 2021 2022 2023 2024 Adjusted net income: Net income $ 168.0 $ 184.4 $ 254.4 $ 532.4 $ 997.3 $ 602.5 $ 126.3 Non-core items - (income) expe
Slide 34: Non-GAAP Reconciliation
Highlights Quarter 2 Growth Appendix ($ In millions) For the Twelve Months Ended September 30, December 31, March 31, June 30, September 30, 2023 2023 2024 2024 2024 Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): Net Income $ 900.2 $ 602.5
Slide 35: Non-GAAP Reconciliation
Highlights Quarter 2 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 Nine Months Ended September 30, Months Ended (In millions, except per share data) December 31,
Slide 36: Non-GAAP Reconciliation
Highlights Quarter 2 Growth Appendix For the 3 Months Ended ($ In millions) September 30, Non-GAAP 2024 Reconciliation Selling, general and administrative (Same Store) $ 394.3 Hail damage (4.0) Same Store Adjusted SG&A Non-GAAP adjusted SG&A (Same Store) $ 390.3 Gross Profit (Same Store) $ 611.5 SG&
Slide 37: Thank You
Thank You investors.asburyauto.com NYSE: ABG 37
Asbury Automotive Group — Q3 2024 Earnings Presentation on 6ix