Asbury Automotive Group Inc · NYSE:ABG
Asbury Automotive — Q1 2023 Earnings Presentation
33 slides from Asbury Automotive's earnings presentation, Apr 25, 2023
Slide 1: First Quarter 2023 Investor Relations Presentation
FIRST QUARTER 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: Our Agenda
Our Agenda April 25, 2023 01 Company Highlights 02 First Quarter 2023 Review 03 Growth Strategy 04 Appendix 3
Slide 4: Company Highlights
COMPANY HIGHLIGHTS ABG | Asbury Automotive
Slide 5: Company Highlights
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Company Highlights $37.66 Since 2017, Asbury has(1) $15.43B $27.29 139% increase in revenue (19% CAGR) (2) $12.90 486% increase in Adj EPS (42% CAGR) $9.46 $9.84B $8.41 74% increase in new car dealerships $6.43 $6.87B $7.21B $7.13B $6.46B 155 (2) Adj Op. Cash Flo
Slide 6: Company Highlights
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Company Highlights TOTAL CARE AUTO 1 Integrated F&I Product Provider WA 3 $15 BILLION Total Revenue(1) ID 2 15 21 9 ~300,000 UT CO 6 IN 4 New and Used Vehicles Retailed(2) CA MO VA 12 6 5 1.6x AZ NM 17 SC Adjusted Net Leverage(3,4) 14 GA TX $1.7 BILLION 24 Availa
Slide 7: Attractive Brand Mix
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Attractive Brand Mix A diversified portfolio with the right brands in the right markets (Based on New Vehicle Revenue – 1Q23) Luxury Imports Lexus 10% Toyota 15% Mercedes-Benz 9% Honda 9% Domestic Luxury 28% BMW 3% Hyundai 5% 34% Porsche 2% Nissan 4% Acura 2% Kia
Slide 8: The Four Key Components
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX The Four Key Components Diversified business mix provides multiple profit streams (1Q23) 5% F&I, includes TCA 14% 23% Parts & Service Used 31% New 40% 11% 49% 26% Revenue Gross Profit May not add to 100% due to rounding 8 NYSE: ABG
Slide 9: 2022 Corporate Responsibility Report
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX 2022 Corporate Responsibility Report We are committed to strengthening the relationship between our team members and our community • Our second annual ESG report, published in March 2023, provides an update on our performance for 2022 • Written in reference to th
Slide 10: First Quarter 2023
FIRST QUARTER 2023 ABG | Asbury Automotive
Slide 11: Summary
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Summary 2023 Year-Over-Year Growth 1Q Revenue Strategic Highlights Total Company(1) Same Store Delivered EPS of $8.37 and EBITDA of $181M(3) Sold over 10,800 vehicles via Clicklane, our Total (8%) (1%) fully transactional online tool, in 1Q23 Generated robust adj
Slide 12: Operating Income & Margin Trend
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Operating Income & Margin Trend We consistently deliver best in class operating efficiency 8.1% 8.3% 8.2% Adj. Operating Margin 7.7% 5.7% $1,274 Continue to innovate and improve efficiencies and productivity through: Adj. Operating Income ($M) • our disciplined a
Slide 13: Cash Flow Summary
HIGHLIGHTS QUARTER 1 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 $31.52 $987 $22.93 $893 $17.71 $11.26 Anticipated capital expenditures of ~$200 $632 million(1)
Slide 14: Leverage and Liquidity
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Leverage and Liquidity Deleveraged quickly following large acquisitions, providing opportunity for capital deployment – share repurchases and acquisitions Pro Forma Net Leverage Ratio Total Liquidity ($M) 2.2x $1,723 2.1x $1,540 1.9x $1,173 1.7x $1,009 1.6x $805
Slide 15: Leverage Varies Based on Business Conditions & Environment
HIGHLIGHTS QUARTER 1 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 16: Capital Allocation History
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Capital Allocation History We have a track record of prudent capital allocation YTD ‘14–’18 2019 2020 2021 2022 1Q23 Acquisitions $835M Revenue Acquired $425M Revenue Acquired $1.8B Revenue Acquired $5.8B(2) Revenue Acquired N/A N/A ▪ Dealerships in ▪ Estes Group
Slide 17: Growth Strategy Update
GROWTH STRATEGY UPDATE ABG | Asbury Automotive
Slide 18: Our Strategy
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Our Strategy Two fundamental principles to drive shareholder value Leverage scale Capital and cost investments in structure existing dealerships Maintain best-in- class operating Acquire dealerships Operational Capital margins through meeting our continuous effic
Slide 19: 2025 Growth Plan
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX In 2025: >$55/Share EPS CAGR of >31%(2) Resulting <1.0x $6.9B ~$32B 2025 Growth Plan Leverage We are working towards achieving our Acquisitions 5-year plan goal of $32 billion in $7.0B revenue by 2025. Clicklane Robust pipeline of 4x We continue to expand our dig
Slide 20: Clicklane Statistics & Trends
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Clicklane Statistics & Trends Sequential growth each quarter and potential for increased penetration of new vehicles as SAAR increases Volume per Quarter 10,840 10,840 42% $5.9K 1Q23 Volume New Vehicles Total Front-End Yield 8,471 Retailed +28% increase Total Fro
Slide 21: 2025 Plan: Clicklane
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX 2025 Plan: Clicklane Multiple growth drivers deliver significant revenue for Clicklane $8.0B Revenue Expanding Clicklane Current volume limited by inventory shortages. Planned advertising campaigns are delayed until inventory recovers. Future growth drivers $2.5B
Slide 22: Total Care Auto
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Total Care Auto TCA is a stand-alone insurance company fully integrated with our dealerships that provides a new profit stream and customer retention tool for Asbury Vehicle Sold (Dealership) Vehicle Service Contracts Key & Remote Replacement • Extensive list of
Slide 23: 2025 Plan: Total Care Auto
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX 2025 Plan: Total Care Auto Integrated insurance provider increasing profitability through ownership of the full guest experience $185M+ EBITDA Seasoned and experienced $140M+ management team built for growth Integration with Clicklane provides further opportunity
Slide 24: Appendix
APPENDIX ABG | Asbury Automotive
Slide 25: Online Growth: Parts & Service
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Online Growth: Parts & Service Technology enables productivity and transparency, driving higher $s per repair order 260K Online Service Appointments 94K (2) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 D
Slide 26: Debt Maturity Schedule
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Debt Maturity Schedule Our near-term obligations remain minimal with no significant maturities until 2025 ($ in Millions) $643 Senior Notes $800 Mortgages $600 $405 $445 $171 $28 $34 $95 $76 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Note: As of 3/31/2023;
Slide 27: Non-GAAP Financial Disclosure
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitabi
Slide 28: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Non-GAAP Reconciliation Adjusted income from Operations and Adjusted Operating Margin For the Twelve Months Ended For the Three Months Ended ($ In millions) December 31, March 31, 2020 2021 2022 2022 2023 Adjusted income from operations: Income from operations $
Slide 29: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX For the Three ($ In millions) For the Twelve Months Ended December 31, Months Ended March 31, 2017 2018 2019 2020 2021 2022 2023 Non-GAAP Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): Net Income $ 139.1
Slide 30: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX For the Twelve Months Ended (In millions, except per share data) December 31, 2017 2018 2019 2020 2021 2022 Adjusted net income: Net income $ 139.1 $ 168.0 $ 184.4 $ 254.4 $ 532.4 $ 997.3 Non-GAAP Non-core items - (income) expense: Gain on divestitures, net — — (
Slide 31: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX ($ In millions) For the Twelve Months Ended March 31, June 30, September 30, December 31, March 31, 2022 2022 2022 2022 2023 Adjusted EBITDA: Non-GAAP Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): Net Income $ 677.3 $ 7
Slide 32: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 1 GROWTH APPENDIX Non-GAAP Reconciliation Adjusted Cash Flow from Operations, Adjusted Free Cash Flow and Adjusted Operating Cash Flow Per Share For the Three Months Ended For the Twelve Months Ended (In millions, except per share data) March 31, December 31, December 31, December
Slide 33: Thank You
Thank You https://investors.asburyauto.com 33
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