Q2 2024 Asbury Automotive Group Inc Earnings Call Transcript
Key Points
- Record second quarter total revenue and record second quarter parts and service revenue with $581 million and gross profit of $340 million.
- Strong performance in same-store results, with parts and service pacing at 8% growth going into June before finishing with 4% growth.
- Adjusted earnings per share was $6.40 and adjusted EBITDA was $236 million.
- Repurchased 193,000 shares for $43 million during the quarter and another 160,000 shares for $36 million so far in the third quarter.
- Effective capital allocation strategy, including divesting two Nissan stores and continuously evaluating the optimal balance between acquisitions, organic investments, and share repurchases.
- CDK outage significantly impacted operations, affecting all Asbury stores except Koons stores, leading to a recovery process that took approximately 12 days.
- Estimated impact of the CDK outage on diluted earnings per share was between $0.95 and $1.15.
- Same-store new vehicle unit volume decreased 6% for the quarter, with new average gross profit per vehicle at $3,649.
- Same-store used vehicle unit volume decreased 2% for the quarter, with used days supply slightly higher than historical average due to the CDK incident.
- Adjusted SG&A as a percentage of gross profit was 64.8%, driven by higher compensation, third-party vendor spend, elevated advertising expenses, and other miscellaneous costs.
Greetings, and welcome to the Asbury Automotive Group second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Chris Reeves, Vice President of Finance and Investor Relations. Thank you, sir. You may begin.
Thanks, operator, and good morning. As noted, today's call is being recorded and will be available for replay later this afternoon. Welcome to Asbury Automotive Group's second quarter 2024 earnings call. The press release detailing Asbury's second quarter results was issued earlier this morning and is posted on our website at investors.asburyauto.com.
Participating with me today are David Hult, our President and Chief Executive Officer; Dan Clara, our Senior Vice President of Operations; and Michael Welch, our Senior Vice President and Chief
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