ABG - Earnings call transcript Q2 2022 | Asbury Automotive Group, Inc.

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Operator

Good day and welcome to the Asbury Automotive Group Second Quarter 2022 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Karen Reid. Please go ahead.

Karen Reid

Thanks, operator, and good morning, everyone.

call later recorded this today's available will noted, replay for afternoon. Kevin is and being be As Welcome to Asbury call. Automotive Group's second quarter XXXX earnings press posted second this Asbury's asburyauto.com. release was The earlier issued quarter morning our on results is website at and detailing are our me our Hult, and Financial Senior Dan Vice today Executive of Operations; President Vice Officer. our President Senior Participating President Chief and Officer; David with and Clara, Michael Welch, Chief will call conclusion available of we up our any for questions. later be the follow-up and the for At will questions, remarks, open

Before during we likely forward-looking begin, the we must remind the to you that statements. discussion is call today contain

significant statements which than may Forward-looking current those nature, projections, financial historical to forecasts, and in which other uncertainties. statements include of expectations, which are each are subject are

certain XX-K may to that ended expressly regarding the information issued statements. and with cause statements, see our risks earlier Form the responsibility earnings materially release December differ and reports SEC subsequently We our of our for to XX-Q, results the including please disclaim update filed Form filings these today. quarterly from any on year any XXXX forward-looking time-to-time, actual from For

non-GAAP discussed defined may as financial on certain under rules this SEC addition, In measures call. be

presentation our is such results. rules, call CEO, our provide quarter SEC the investor applicable pleasure directly by required website, to As measures second reconciliations non-GAAP to asburyauto.com, my David? our It to GAAP on on David we posted to our updated also over an any measures financial highlighting comparable most the now hand Hult. website. We've

David Hult

second good quarter Thank to call. Welcome and our you, Karen, morning, everyone. earnings

towards our strong make plan. XXXX to progress continue We

billion up and per EPS adjusted to $XX.XX, $X.XX of to Delivered million [XXX]. profit gross an to $X.X increased EBITDA gross to XXX X.X% adjusted For the from $X to billion grew drove increased quarter, by vehicle F&I $XXX profit margin, by and million, $X,XXX, an adjusted by XX%. $XXX revenue increase and million, operating XXX we million

During to on and our plan the continuing net executed leverage. second of acquisitions our our integrate quarter, we reducing

systems Care tool rollout the TCA platforms. to completed. for systematically Total addition, the transactional work requires fully integrate Combining significant Clicklane all of across and with integration was In Auto our

acquisitions, income losses XX $X.X by inventory the completely we excluding stores on on our expand opportunity Asbury quarter We and to of will for hit expect during governed TCA revenue F&I the will advertising Currently, our Clicklane and currently XX% rolled by Once XXX year billion all this of is at end almost to XXX and to horizontally quarter. to new pace lack stores, until XX out, Clicklane stores rolled been $X XXXX. rolling installed dealerships stores the pace second quarter, into sold on legacy XXX future in dealerships Once In of is through all by inventory to into provide XXXX the acquired from in X,XXX be on from of our TCA business. and XX% date Clicklane, XXXX. the revenue vehicle asset through out first levels the the of are hold sales to start unit improve. of million approximately has on unrealized year-over-year. TCA our completely with LHM Clicklane our we billion growing provides and generated unique EBITDA us to our business XXXX. this out XXX million investment. campaign units

adjusted decreased not second X.Xx year-end XXX but Net end all million to meaningful we in We the to continue at cash new date, our from levels anticipate the do of flow. generated we experience streams, solid operating of to inventory leverage revenue Year demand at in of a recovery across quarter. XXXX. X.Xx have

the to our us deliver allow most car to centric levels Our thrive, continuing and strong will steward aged retail. team conditions. and financing providing weather sizable their park cash automotive available, market buybacks. results productivity, focus in and consumer We consumers can to shift reduced to where efficiency improve outstanding environment look to current and be guest technology up healthy, readily are strategic share we with forward to shareholders great pent OEMs the an financially experience acquisitions well-positioned offer to our combined for our members our while brands flow partners with to strong record the With and leverage demand our

to to the have and people We brands business. our improve with strategy grow right the execute in right our states the right

performance. my to produce and that to strong now the hard like would is results our be Dan? It teammates. I and acknowledge fellow work will discuss operating our through I hand the to shareholders the guest our we centric for guests. serve retailer continue all to Finally, Asbury efforts dedication Dan over Thank automotive of to most you. your call

Dan Clara

and Thank everyone. morning you, good David,

dedicated all worked teammates fulfill our guest hard the to our retailer. you thank of who First, to automotive commitment so most being to centric

Due days supply $XXX new year at from to year-over-year. the performance and days, second down XXXX, to was the vehicle inventory levels total XX% prior new supply was volume normalized I'll In remain compared our same quarter, At million and of Now, four end our supply. our day unless second new vehicle stated new well the of turn below declined to vehicle vehicles. otherwise. quarter. quarter the consumer demand constraints, to June, inventory outstrip store Starting our XX continued with continue to

quarter be through XXXX and our on the increased the we maximizing while profitability, levels However, a vehicle, average retailer. steadfast in to to prior we our and remain in gross remaining centric $X,XXX significant our our new also new from We low most to experienced mission inventory increase which anticipate year automotive $X,XXX. are focused commitment to per guest profit guests

gross profit We with PBR Used vehicles. volume. used a was in increase used X% revenue $X,XXX. used to XX% our retail in a retail Turning decrease had even

a the which from days year. Our $XXX prior X down total XX-day inventory ended vehicle used quarter supply represents the million, at

many and consumers, cars, our mentioned. launched turn-in, used direct the venues of car such franchise our your different from recently model just from of is vehicles as, [ph]. comes inventory of One trades, Clicklane I sources tool] the the XX% purchase source loaner the benefits to [sell lease including

vehicle $X,XXX, the F&I F&I, new XX quarter XXX%, to prior sales $XXX ratio you XX% used to per per total compared F&I front-end vehicle $X,XXX total all quarter strong representing of in quarter. the delivered with second a year Our from $X,XXX. PBR to vehicle up for team tremendous In increased of per our results. used our to a F&I quarter, prior to increase was in these of rooftop. the numbers quarter, for the Shifting an of Thank an year we yield

Moving to and parts service.

our X,XXX conversion new second increase the through in XX% a Clicklane. revenue increased is of exceed to importantly used growth. vehicles sold the Clicklane revenue, from guest and our We quarter. to The service its times, in outside in rates, Our expectations the strong warranty from Jumping XX%, PVR quarter control rebound, almost first transaction continue which revenue parts and experience. Clicklane PVR, pay posting our F&I XX% XXXX. customer continues most quarter, the XX%

since quarter ever In second was Clicklane’s sales its June with inception. most the Clicklane fact, in it best the posting quarter,

traffic marketing team efforts In relentless drive the continues addition, in to [ph]. our through [SEO]

normalize. we year-over-year new We $X,XXX of built time with to was inventory, and Clicklane of achieved of which them score increase online. approval, us in such for quarters, finance a equates CPO only service rate XX% remained total departments. Clicklane fully incremental consumer higher roughly experienced some XX XX% in-line had sales new who network. requires sales a see were stores, offline the average XX% seeking XX% prior our that within Clicklane deals, lack want yield. trades and XX The XXX, our this visitors lease, full of double to credit F&I advantage customers all Though an and allows of The while to X take content does of thus reconditioned instant opportunity of our customer that for of levels which nearly at retail with the used trade-in’s that a the minutes apply retain PVR search. were As transaction vehicles sales our a require front-end year-over-year. received transactions won't were of in paid financing XX% SEO over Clicklane credit ecosystem PVR purchase those customers XX% vehicle average the inventory deals. customers consumers, dealership our in with be restrained our $X,XXX. internally XX% our a of but $X,XXX Total due assistance. not unique average potential cash stores. and Average quarter are additional are front-end down of minutes Asbury's continues XX% to to a and for increase Internet allowing mile $X,XXX, vehicles of for XX% converting financing. the to websites, parts score until of at traditional be delivers in to to than is is to payment Clicklane we radius to a new of or continue reminder, approved

second Clicklane’s presentation for starting related iteration announce investor in products. visuals. to Page excited are reference on F&I our We details XX of Please

that consumer user hybrid We guided the a allows to include a in experience is the for manner and have them. convenient that revamped approach purchase to

TCA and integrating in mix. e-contracting addition, are the In fully we

we financial to XXXX. the call acquired now As over generating Michael? end roll in Clicklane discuss $X.X our performance. hand revenue recently increase approximately billion stores, we our I will by to sales to out to expect Michael the of

Michael Welch

Dan. provide call, members, team Thank I good our financial for to highlights some you, other would company. To on morning. participants our investors, analysts, our and like

and was $XX.XX. the to on last on per and same income our of to losses Net cash to EPS adjusted for Year or release increased pay proceeds the quarter, dealerships net was operating adjusted diluted which investor Net million $X.XX $XX the combined the used estate and $X.XX the in the same real XX% and income to of website. see million performance quarter. year, share, details quarter our press our or $XXX,XXX adjusted $XXX vehicle XXXX for of repurchased financial [ph] $XXX per quarter quarter we date, For from our flow additional debt adjusted increased totaling million for stores share. shares. income million, the XX% pretax our to for presentation in related our in invested volume net of allowed generated adjusted diluted XXXX XXX down one-time two financial [for] million, sale Overall, supplement primarily please second with $XXX compared of gains

$XX we year-to-date, purchases, estate capital million real spent approximately on Excluding expenditures.

and accounts, with strong quarter our at cash offset excluding billion X.Xx, Our we net leverage and Also Total availability the credit forma liquidity used from both approximately of facility. X.Xx as ended our the on pro Auto, balance revolving stood quarter, sheet down the ratios line at Care end cash of $X comprised remains at adjusted year-end. to floorplan of

For are to consider and be approximately transactions. for XXXX, we of opportunities buyout amount XXX million. excludes we This planning potential lease estate purchases that financing real CapEx

For pretax the $X million made on of quarter, $X unrealized of investments. included income, which TCA equity million losses

would shareholders. have losses, these over all some would I $XX for to communities, the I to David hand dedicate teammates now our thank like back to our remarks. call TCA ourselves, future closing David? of and Excluding million for building our a made provide Asbury who themselves to brighter unrealized will the throughout quarter.

David Hult

leverage cash generating net flow. Thank aligned are than closing, opportunities We've expected more disciplined reduced and growth. you, Michael. robust for our In strategically we are considering we

the remarks. are prepared our optimistic our and Asbury our delivering plan, future XXXX This shareholders. We about for achieving concludes of while

and turn take will your the questions. We the Operator? call operator over now to

Operator

The Instructions] first Inc. [Operator Daniel of question comes Imbro you. Thank Stephens, today from

Daniel Imbro

Hey, thanks good the on for our morning, questions. guys. quarter taking and Congrats

market continued driving parts this, side, is on On initiatives any growth, what want that sure service curious side? that loosens the labor be maybe labor or implemented backdrop as have helping on you that you technician been not any update on curious alleviate that address showing for Dan, strong this there growth, to double-digit how the Is you've if are I'd then the share? and I'm the but And guys gain developing? the

Dan Clara

Daniel. This Good Hey, is morning. Dan.

So, fixed on the operations. growth in our

years, appointments increase XX% Last schedule consumers few with sharing our a online last saw their advantage the of we been making consumers it taking For of from for the you initiative convenient that. online. year-over-year to have quarter, we

want and you in you out can you availability your throughput all Now, have to if that don't the irrelevant. but out, the almost shops get work there, it's have in

the to question. our consumers also for news was also technician me still is you year-over-year. Oh, the I So, has we the think throughput we part but good are second it saw that Listen, the have not we our in situation of the our technicians. is, the asked schedule being That and increase headcount only about technician been. online, convenient stores same

you them, importantly, but but and I hire technician move we're up The can tech. and a from focused level and a retaining developing recruiting at recruit them that mainly you and hiring still get a, master not to think technician can is most b, technicians, only entry that B-level those moment C-level technician, an them ultimately within.

knowledge, You of the get And amount build of shop. tremendous again, us it tremendous that a helps through loyalty, amount

Daniel Imbro

I'm deck think were higher out penetration slide new Clicklane of Clicklane, there morning, PVR Thanks functionality, metric rolling and Dan. can the is one PVR consumer higher that platform second the do F&I Thanks or an into this the is what chain drive opting the curious, bit average. plenty and your of even There maybe drive Dan. higher? there's F&I you a that on but that on to in light of you help know you slides growing is know average opportunity than I the I wonder kind at company

Dan Clara

Yes.

the that the product, select or choose. investment, their acquire what it build back say to comes all to protect deck, if way different or look With also of they down have à something. for And what of you be you that new can mean see, of build that let's that this term able the the sold la and the being wants you to to the better likes think by ability I guest I is, nobody that iteration through or lack carte the can F&I a you bundles. from convenience

results to believe and So, the have going excited Clicklane. is but in that protect we there excited consumers iteration increase their of to to an releasing F&I investments are of we what do second we're how see the

David Hult

from numbers And haven't I'll an was their I transactional the Asbury We are no and if but first on attention numbers perspective employee. whatsoever X,XXX F&I that. over really think our by that everyone consumer their That pretty discusses just we our paid add to those engagement version car, self-selecting online, of F&I a products the from tools strong. launched.

better. to gotten present the is products So, better. technology visualization has The getting

the we're the on think for quite X,XXX. actually consumer really room being we to is So, there over improve it, but with pleased self-selection

Daniel Imbro

the of Clicklane available all the a same Are in as products on dealership?

Dan Clara

products. on Yes, we focused the core

stay sell Some dealerships have unique additional kind circumstances within their markets and their national brands the products. where some of they on mainstay on the might focused products We platform.

Daniel Imbro

Great. just the intermediate the Xx down the would M&A? looks here, more about shares. balance on where to term that And one for bought get me. sheet, looking want you leverage And like at on last before buyback, X.X over million Michael, it to maybe you net back

the exhausts that think authorization. I existing

So, capital where does that bend priorities? your Thanks.

Michael Welch

first all share was the on done quarter. the buybacks in So, that

just get all second [indiscernible] share leverage start a down looking acquisitions in perspective, to From quarter. before we first that's at the quarter we nothing want And again. so Xx buybacks and

at want to leverage to the of we're acquisitive be the be able acquisition in at so front. level to And be we on terms

first but volatile, some of with buybacks for So, share a acquisitions, priority the price well. is some as course, opportunities little share being there's

Daniel Imbro

the for color. Thanks guys. Best forward, going of luck Great.

Dan Clara

Thank you.

Operator

Morgan. J.P. Rajat of question next comes from Our Gupta

Rajat Gupta

and morning Good questions. Great. the thanks for taking

GPUs night, comments which My structure We earnings inventory of a the compression did key was to dealership dealers floor these plan in Ford SG&A. X,XXX time. they interesting also GPUs over put putting noted pre-pandemic the their continue electric low it vehicle made about the of pricing is that would together to sense on also their and made how but might happen, if all around assistance, to talked new comments not as see call change? comfortably some also strategy, margin some it last lead to and actually profile levels, that to model, structurally implies above the were X,XXX still related above lower

bottom to margins thoughts EBITDA Just anything could line you should Thanks. if be I follow-up. just back if I'm missing have going about provide And concerned and dealer curious a all there, levels? pre-pandemic investors your

David Hult

is David. with really address conversations proud to as optimistic many this I best too it our Ford the we're lucky and can. the private I'll very manufacturer feel partner, about Rajat, disclosing brand we Without represent future them. with and

some think as it away of it lost I of about of on I in it's as experience. being redistributed not as the much was it, the ownership be might it a through bit little and margin, guest much context. gets the other piece When naturally sections going performance in talking

uncharted EV the out And say what the well-positioned the right we've approach, it going? in is we're supply to quarters, margins with we see done profits good levels, or pre-pandemic really this and we inventory what consistent with back even per past is back it, to our has won't into with to like it shouldn't with think normalize growing same partner. I we vehicles. over electric We the forward if time, average We few would to this, their an going that and market and think buy down I've SG&A. the think the opportunity relates said next it but still find and to our years of bring feel over margins consumer pre-pandemic gross territories it vehicles we've I'm a inventories I I to We have we in still so get the as to demand stay say you the is, going to margins, to need propensity say future think way gate. age going if everyone really out retaining get would where digital forward coming done What I market tools, omni-channel a with we feel be we're products. old us

I think different company. we're a

you'll even supply I levels the a think forward I day elevated different from space it's and as time And grows. now. right pre-pandemic see think going margins

Rajat Gupta

got if follow-up the you you're seeing know, you could it, just on remarks still Got And like, it. million you that underlying updates give maybe maybe, macro pockets financially the the comments which see consumers you region seems more, of, what around to on Because That's in prepared us latest based in some SAAR terms respect Thanks. of helpful. of it your case a your like, healthy, how to environment. assumption anywhere long-term reiterating a Is like unfolding general? in here? with target, any any base weakness know, XX in ground, demand on you're still a assume

David Hult

back Yes. but we year’s miss I assumption, I'll of that on it's of next Certainly, year, million come and certainly wrong the by Maybe today. a now, to can be then sorry. don't another year. model XXs, around. high I low Dan difficult in. in please SAAR miss piece this XXs next predict too we're really it’s that's back XXXX, at start Did but believe jump If XX on here improving the implies see million. I sit XX We something, I'm We we our see think as XXXX, SAAR. that? we end can what to

Rajat Gupta

it. was that No,

in recent prepared is think what you gas general, financial underlying remarks the in the demand? some, I prices, sort is seeing given for Just conditions, inflation lead the have etcetera? just of pockets weakness the trends, right, remain you're like there terms on if pretty consumer, on any a in of curious mentioned you just of demand the that sort how ground, but the of healthy today, changing,

David Hult

great. department. are service and traffic same service quarter-over-quarter strong. and parts the the People dollars say would spending dollars The still greater I still is remain in

So, think that's great. I

but a how in. coming you new it's speaking, the think it hard half because that still business days really is I we're car understand strong such low pre-selling to Generally have solid, supply. cars the is are

in the overall. a So, it's market pricing was where six few valuations. but relates a when the would a thought to by but it little six It's bouncing aren't I been say varies brand, buying bit I little been putting in last people cars lot little months to car would of getting a what last the months, hit used it to eight these impulsively last softening probably they're around the were and in selection from greater is than as bit ago, generally care right it ground. now. weeks more the It the that's into is years. say the And six bit

of still that's So, move to trying it’s say the forward. the still be footing I find valuations on the one segments, going to all rest think trying still the it's footing are It's we're the I used the where to what of for would but business, to strong its year. the find healthy,

Rajat Gupta

lot. Makes Understood. Thanks a sense.

David Hult

you. Thank

Operator

of [Operator Instructions] comes Dave next The from today Whiston question Morningstar.

Dave Whiston

Thanks. Good morning.

XX% purely just there a You about curious want Clicklane or score customers credit other rejected, that XX% talked one, that can that about issue variables? is gets of a who loan are get

Dan Clara

Yes.

average got keep – script negative So, the higher stores Clicklane in what have it's which I but our XXX, be some to you is credit a the might In is. some you on than stated credit score, combination opportunities. equity that it is in score cases, or concerns mind,

we're mentioned. offer the a us vast is of that rating we allows very approval So, see and XX% customer, through that I the the Clicklane which credit coming to credit good majority traditionally

David Hult

They're understands about transactional credit it. worried the time. fully higher worried consumer now with a we've scores what to that subprime belief And transactional a to just and generator. lead is certain tool, fully tool our their with strong credit the fully on sale referred this but With Dave, that, our about previous super the tool. because online. point, of saw it's follow-up impressed in And as is been We we've a scores lower transact tool, It you aren't on credit financing. lot couldn't much customers a took more consistency to a the

unique can't we have but circumstances. are are into people lenders XXX% marketplace you we that that's tools considered also a our But loan better just launched never It’s always traditionally are lenders. we're some think get you credit. digital help why subprime There So, seeing on some the out, not, finance. people

We XXX but for is room XX% really an credit great, average So, always think score we strong. is there's think over improvement.

Dave Whiston

got the Okay. I or to X.X slides. that And guess even is you I can carte customize do still if at bottle only one a these three bundle, And you've want can I well, subset but on totally the not of packages, is, you these an and not within looked five option? guess I la I'm the them? package you of clear, want offered, that say, of F&I things

Dan Clara

absolutely. in we best This Dan built this it based the mind Yes. when is again, Keep the from all consumer. day one – what we when in Clicklane, for on did is we built

their have So, the XXX% bundle, it a you able you and way that want you he going be product can go the can la build do or – providing you wants all there decide definitely build All a you she what you're home want of delete consumer to day, at carte, we're can if or from you in the is can it. just when by doing the of but comfort or to means to end it, a office. some options, the their

Dave Whiston

a the how for event, is Louis bad Okay. stores? And your just flooding QX St.

David Hult

in but locations Yes. It's what's our horrible harmed, city fine. the caused going We've It damage. physical have people certainly lucky. and any hasn't been been on physical are

Dave Whiston

Thank guys. you. Thanks Okay.

Operator

Craig-Hallum of Capital comes question from Sigdahl Ryan Our Group. next

Ryan Sigdahl

Good morning.

F&I want follow-up Just change. on to interface the

decrease? that so interface F&I anything do I with down was versus that? change quarter-over-quarter to And like if And the talk then looks to you guess had it QX. can

David Hult

specifically about down, F&I when Clicklane talking you're think you say I was F&I?

Ryan Sigdahl

[ph]? correct. is [XX.XX That XX.XX] was It versus

David Hult

Yes.

Just sure. want to make

iteration So, out the rolled F&I speak. being second of as is we

being of not consumers I'm of it's I taking advantage to So, weeks, believe if going a start couple mistaken. it. in

all. negative not second number at did on have any the iteration impact So, that

Dan Clara

know light new product inventories, sales the The speaking, the reserve higher you cost and dollars higher. because our generally vehicles, other on vehicle thing are used F&I I of in both would than is the with mention, vehicles

lower you're and PBRs are higher number selling, have the F&I More cars. So, domestic import bit. little than upon depending going moves the balance a around what to trucks

about what really it's just line. that transacts think I So, on

are will if it and of the depending newly we X,XXX again, the much us be car face to don't is around with quoting over used, in think product with a think face, little a I always know move the bit spread the consumer selling self-selecting but that's mix, upon any X,XXX to I numbers, but really brand compared of strong. how to and it peers our F&I

Ryan Sigdahl

vehicle, so challenged new any unit idea XX%, on doing one stock share? just your sales relative same down situation how store markets, to inventory and everyone, obviously across Then market in Yes. but you're specific competitors

David Hult

Yes.

month a So, brand I someone look it's frustrating market end a than vehicles the more because our you to bit of at few of have a definitely. each stores some supplier of mean, market losing at have each because and in still little to the have it is well. far the hardest import. might It zero-day cars they're just domestic as sell what going with when on the in really selling their timing hit got as and with chip the hit quarter shortage. of trucks cars get We're reported. as hard what's is got everything on we deliveries We have. We the share

to it XX-day high supply So, simply the brand, upon I we're what of the what is is report end close but number would a We we We're because cars based low time quarter. were quarter. the just mix, the revenue it's the couldn't think of that reality in brand That transact of our count was tell had of for and you delivered we many at I allocated. really really so getting. turning reflection by spotty

days in number we below were several So, actuality. say, would that I

Ryan Sigdahl

luck. Thanks. Great. Good

David Hult

you. Thank

Operator

Jordan next Our is Jefferies. question Bret of from

Bret Jordan

Hey, guys. good morning,

David Hult

morning. good Hey,

Bret Jordan

would of value a looked available, is the sort spend higher values spending monthly standpoint? rebound, You or at correlation more declined with of supply the because F&I our PVR, transaction if is have customer from more to transaction of they

David Hult

depending new And Yes, people think things. buy all upon things. a make buying folks to we're transaction. of Dan they're love of Those that their sure think fairly they hate transaction slightly I technology, make think at more would best staggering an I products. or see be of that be that. vehicles vehicle every it We if going used as decades the products would speaking, cost buying at The tend with I the to car would slightly it's sale security asset based earlier. new to possible, conservative, grow. is say say, do you'll really $XX,XXX That's We now, I searching in consistent car sold last on car as to numbers on out the online Not we're to pre-owned luxury as, less but customer a used touched to rate the I a when that want car. couple ebb $XX,XXX and or sure slightly in-store you'll varies it an the protected for enhancing the of so regardless generally flow; focused it's year, been keeps buying think continue for up. I upon see continually F&I grow. the customer

Bret Jordan

be sort used market On on just the I used, been in of profitable of obviously piece? the guess, this sort challenging have given any question seeing dealers bigger see to or a even independent market only you it's Do of change much entered? contraction Are you the cost attrition either the inventory. only that of the in does one driving of used through everybody some or get dealers this environment

David Hult

I but to sell. road securing the as Yes. have I dealers dealer full the have a market franchise know impression much as awareness that, independent how than answer much inventory the harder don't to far is, to my

I feeling Again, about that in And more were benefit offering we numbers the we all think than I talked the Dan our sourcing the and of programs good CPO used different vehicles. far have for they're think quarter. have we are. pretty squeezed

investment, of on XX,XXX, we're that fair was, it it cost a return at it's We making making in and look sure wasn't the car. had a during volume $XX,XXX some a of that? shift a getting sale and used what And as think we from If we're good a as the movement up return. markets valuations I much chasing go down. quarter, where about

well. So, our that affected as PVR quarter in

I available, say So, that, us opportunity business going for there's And we don't time. the see grow. more get better car for year but QX over, more to opportunity always I into when mean more There's necessarily in get move. over forward always start should for volume, but used cars more or to you have us car fleets company and be to to products more inventory turn rental next QX, access as and there'll become to

Bret Jordan

you. Thank Great.

David Hult

you. Thank

David Hult

sorry, This discussion. concludes I'm go We… ahead. today's

Operator

No, go ahead. please

David Hult

No. question? another Was there

Operator

No, no.

David Hult

This today's with appreciate We concludes forward discussion. next looking day. participation you and your Okay. quarter. Have to great a speaking

Asbury Automotive (ABG) 28 Jul 222022 Q2 Earnings call transcript