ABG - Earnings call 3 2023 | Asbury Automotive Group, Inc.

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Operator

Greetings, and welcome to Asbury Automotive Group Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this call over to your host, George Villasana, Senior Vice President and Chief Legal Officer. Thank you.

You may begin.

George Villasana

good and operator, you, morning. Thank

Earnings call As posted results be Automotive was recorded release on XXXX will issued earlier and website being for noted, Group's Asbury's replay is quarter Quarter Asbury our today's available to later and Welcome at press morning is this third The Call. this Third detailing afternoon. investors.asburyauto.com.

our Senior and today David Financial the Chief up President Dan open will questions Clara, for we and Michael Chief Hult, Executive Operations; be the and of our President Participating any follow-up Senior our are Officer. President with later. conclusion Vice remarks, me and of call Welch, Vice we available questions, Officer; At for our will

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

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

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

any disclaim to expressly responsibility statements. We update forward-looking

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

on comparable measures provide any non-GAAP such GAAP to website. we most of SEC reconciliations required rules, directly applicable As by financial measures the our

our quarter at results. We also an presentation highlighting investors.asburyauto.com have posted third our investor website updated on

call our pleasure the David over Hult. is my it Now to to hand CEO,

David Hult

earnings our to Welcome everyone. quarter morning, Good George. you, call. Thank third

processes, the guest-centric has efficiently they diligently our automotive performance. and They the set experience integrate commend in everyone to infrastructure cost up our remind to deliver company. increase team executed and resiliency to The like productivity of as most doubled strong drive of years, work maintain as have team in retail. I'll control the we to members of I'd span very scaled. has hard worked the efforts size X our business to First,

consolidated billion We in revenue, the Now XX.X%. gross quarter. of margin profit margin percentage of of an to SG&A operating for gross of We adjusted our profit third a on generated results XX.X%, had adjusted a had X.X%. as an delivered $X.X

Our our $X.XX. adjusted million, EBITDA $XXX EPS and was was adjusted

I'll did and work touch areas have we we to some on do. areas where well we other know where

quarter, As saw vehicles. some brand beginning model expected, we headwinds with and mix in this new

remain at some to remains a supply days difficult high are are where demand replenish, While while we at cases others models though days level, elevated supply. seeing selling well, healthy

continue On market the to for vehicles. sourcing used side, we challenging see a those

seeing more are sustainable as PVRs We continuation a to whole a trending level. of a

is mentioned Service are Demand Our Parts we and our growth. area quarter. Service Parts business. the that in confident integration was by last Yet an impacted business and disproportionately activities showed year-over-year we longer-term strong, remains the and this of trend

Turning areas the to F&I. I'll X in quarter. highlight

are a manage slightly lower look environment. our payments products in We to customers F&I ways for rate penetration in lower rising rates as seeing monthly

in rather in will over products result TCA the stores. like a recorded years results products is in way the Michael by X than across provider. detail are section. which more way will cover Second, impact over in from third-party The out sales next for driven time a the Asbury upfront his the legacy drag which in roll the the negative account we on as

by business. I'm quarter SG&A performance encouraged of our levels our the to to commitment direction our Finally, in initiatives. demonstrated of our the and and progress structure cost operations manage strategic the the

revenue phenomenal averages well-respected generates set Jim The members per with billion and over million annual Automotive a Koons rooftop. pending group a We about in group $X in and the revenue are the enthusiastic team acquisition of of Group, over leaders. $XXX

evolving Amidst am backdrop I of business diversified and our model. about automotive retail the optimistic our space,

plan our purchased of quality capital making company, to stronger best use. strategically have a part us assets We to deploy highest its long-term and

We before, we and business. integrate haven't to in have and growing markets grow the strategic operated continue that entered we into

car where We levels environment higher, operate while the trending are average it important in age an of years. XX.X historical is levels. note we is the to been have below And SAAR still

our EV out the a Our the critical business Parts complexity next over vehicles, and Repairing few addressing of Service well numerous into and newer will success older models remain rolling element future. the cars years. of supporting

focused existing our of with the strategic long-term We act and fund pending are achieving we on Overall, capacity. liquidity the acquisition Koons goals. plan to

this and enabled or flow sheet balance to need the strong reliable deal has raise cash issue equity. undertake Our without debt us to additional

that aware we have have well return assumptions adjusted and up, our rates interest are We moved accordingly.

strategic a in will remain capital allocation with debt decisioning on focus We down our with XXXX. paying

size billion our year we EPS we annualized adjusted an plan, the generated the in cash $X.X billion. flow operating million in over the few of over million X nearly As down pending are the million winding adjusted before a $XX now rate grown $XXX to adjusted to Koons and to acquisition; run from EBITDA progress just In $XXX our of increased billion proud from short $X made scale $XX X-year $XX over to of on business. acquisition; Koons from transforming pending revenue I we just have increased years, or have share; am $XX of $XXX billion per

company, which Total experience. We fundamentally introduced the and changed Auto, insurance Clicklane, buying Care tools an acquired

long-term performance. map will Dan? now will discuss Dan clear objectives and operating our the for year-end call provide to growth updated results our our planned after Koons the over the to I hand XXXX Our trajectory. of a closing to growth be road acquisition

Dan Clara

off once most David, good morning, and thanking members our experience. to everyone. start I'll team by you, guest-centric Thank again the automotive retailer deliver

unless same-store which new performance, Starting to otherwise. dealerships moving TCA includes Now vehicles. with and stated

vehicle the which represents at Our supply. a ended inventory new quarter million, $XXX XX-day

models. brands quarters, among and As in there variation previous was significant

X% revenue XX,XXX $X.X volume to grew vehicle new unit over year-over-year X% and vehicles. billion, year-over-year to Our grew

$X,XXX, per was gross profit gross this vehicle was margin new quarter. vehicle average New X%

to Average $X,XXX profit revenue used quarter. was conditions. and $X vehicles Turning for availability vehicle macro gross function the in was Used vehicles. used the a of quarter, volume as unit retail was vehicle XX,XXX retail billion new stronger over per

used a which Our XX-day supply. $XXX inventory million, at ended represents vehicle the quarter

our As are remarks, this opening inventory. remain on profitability challenges strong vehicles conveyed still volume strong internally a chasing profitability maintain delivering seeing about in in of environment. over we source focused XX% in typically profile. We sourcing to We

third We compared yield total vehicle F&I. results. front-end our F&I $X,XXX to of payments, which per PVR $X,XXX. delivered reflection rates consumer quarter, was the year, pressuring our a F&I to Shifting interest last of impacts higher an $X,XXX In

Service. Parts and to Moving

growth XX%. Our Parts revenue growing tough the in million and year's increased of over Service a last business X% $XXX quarter from strong same-store comparison to

also up. have of business the the for been a more We platform transition to software across and towards unified fixed investing support process

which his activities mentioned mixed in David integration the performance. remarks. among result of to the observed that We Some opening a relates stores in

Clicklane note Clicklane. used we turning the a of that basis. retail with for for all-store increase all-time powered sales quarter. Clicklane, Now an by new We reporting XX% our and We year-over-year. third quarter, sold in record XX% another in Please on revenue to quarter the over achieved are through $XXX vehicles third million Clicklane. generated were Clicklane XX,XXX

constraints a tracking our in low within sales. up day pre-owned of governed to of and $X revenue portion supply that We sourcing new are in billion approximately good make relatively high-velocity brands XXXX, by vehicle mostly

which were average of in PVR Moving of credit our off-line customers XX% XXX, for while Total of approved $X,XXX, remaining quarter. third last sales F&I for new customers $X,XXX total those financing, assistance. higher score front-end Clicklane XX% which which required was of Clicklane score XX% sequentially the PVR those some on applied and to to than than credit is of KPIs of instant and vehicles some customer the average higher were equates stores $X,XXX The that of Clicklane yield. QX XX% used. received front-end quarter. approval, at the and were

our average XX% and continues to dealerships cash over that sales from The the sales consistent were The Clicklane payment delivery the last XX finance was quarter offer. of were average of Western convenience be the distance utilize to lender Clicklane $X,XXX. with as down states our miles, finance sales. XX% has

is with and the We Clicklane rates. growing pleased are driving adoption way

from great customer the seeing experience. feedback are We

within You our financial performance. of will hand I hear Michael business integral an us call now part becomes discuss about it the context our of to as results. over overall our will talk model in Michael? Clicklane the dealership the to

Michael Welch

would Thank to like other our the [Technical details financial financial team I highlights company you, for provide Dan. members analysts, good additional To our some for participants morning. call, our on Difficulty] and investors, performance on

Operator

the operator. your mute is speakers? Did you line, This

Michael Welch

$XX about CapEx to of income. CapEx $XXX XXXX million XXXX Gap] be roll Year-to-date, million to a to acquisitions. Of expected related million properties. to $XX be planned continue the as TCA our pretax million, of this [Audio we out made is replacement leased related to $XXX

our in dealer TCA of larger deploying XXXX. are all states the will first we stores end by with our enabled We of TCA current have presence, with quarter and

for headwinds within deferrals These begun in TCA our our will markets. as PVR F&I have up trends to pretax results, business TCA show to in our led meaningful The with operating $XXX generated cash expect robust and we be a resilient product XXXX of now and income million. new million of TCA Year-to-date, We flow, to adjusted XXXX in associated rollout be which expands existing some model. number. $XX more

quarter from the to week, the $X.X cash, approximately continues on and floorplan agreement Our as our used Last billion revolving accounts be up of pricing with availability line credit billion comprised and renew cash facility, of as and to our ended billion agreement. previous offset we an $X.X Total we $X.XX facility. at upsize credit excluding same balance to our reached of liquidity, Care Auto, sheet strong both

partners credit objectives. current continued our financial to OEM This like The agreement long-term support extends We'd us October the their flexibility and our for strategic the to banking XXXX. to support. facility gives thank

pro leverage earlier X.Xx September, reflecting cash shares the at was adjusted of of in use Our the year. end forma the repurchase to net

floorplan vehicle our As mid-Xs. and floorplan the capacity net Koons the acquisition. current pending David of the Jim leverage in offset to be using of sheet used mentioned, comprised balance we mainly accounts cash, Koons Also, pending liquidity, the anticipate acquisition, purchase anticipate we

flow allow end of or robust XXXX. reduce the back Xx lower a as will cash Our by larger to us leverage company to

continue experience us closing high you. Thank Finally, to I to and I'm our grateful now back Asbury at team and David operate focus help the the hard for a level day. on each pass every the remarks. members will customer call for of who work

David?

David Hult

to big to leaders our close and organization. Thank you, remarks want I members a with our our team within Michael. prepared thank you

are you. noticed and efforts Your appreciated. greatly Thank

XXXX awarded We XXXX Workplaces X by been Greatest Companies of and Newsweek, Work a environment the were rating. Industry commitment America's a And U.S. we recently star making named were out Retailers recognized nationally. also by workplace great receiving dedication Best of Your has as one X to in For to

News commend World & environment. fostering I and welcoming Report. you for enriching all work and of

to leaders the vision. quality our our store members This team to clearly our and committed prepared our speaks This remarks. of concludes

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

Operator

question Instructions] from Stephens. comes [Operator Daniel Our Imbro with first

Daniel Imbro

start business. And wholesale cadence. still maybe to slowed things focus despite remarks, there, prepared but if the over sequentially on want did provide color on in you on noted Did changes you month-to-month? falling. GPU we back think curious profitability can volume, see a used step more the I obviously, Dan, prices but I some your David, have noticeable any

you GPUs in as environment how used about can about maybe you're well? talk this thinking So

David Hult

then and Yes. this start Daniel, I'll Dan in. can David. jump is

it's profit, gross car going out vehicle a what There's It's shopping acquire for. less used vehicles on. There's the space. about more there. the all competitive you With

So what pressure own up your creeping on put is for little cost we the margin. as of sale a as bit, far which the has vehicle

to not chosen chase have We volume.

normally So auction less than at the we're purchasing cars we would.

higher the Our PVRs. thoughts purchasing a would at we're see rate are auction, you if lower through

But it's We in going the a really difficult what predict environment, to we're getting close to think level. be. sustainable future dynamic is to this

Dan Clara

little the at bit Daniel, will I you, of see on And But answer able day were were Dan felt the question, keeping to XX expecting. good the beginning the we benefits our supply. what XX in I specifically pressure quarter. we did a of a put that's so one bit To short. the a little of of quickly. mean more adjust we That news to pressure that some tell than your vehicles, is here. we additional -- valuation margin the is

change, As conditions adapt. able we're market to

the were of adjust if a able at cannot we from quick perspective, look our because And we we you read that were wholesale perspective, -- wholesaling vehicles the because level. on wholesale out that turnaround store to we

Daniel Imbro

of here of side $X,XXX, I bright Can GPUs mean, it, it, business. inventory of, you that I how, is far new premium? segment? versus given the about follow it through buckets more still that tell domestic seen pre-COVID if building, the probably over OEMs walk just that despite GPUs, Is on spot. And Is higher? what maybe David, just disciplined? the Taking That's being And domestic helpful. you've the up does could call Obviously, in new vehicle are still $X,XXX. GPUs it of new future are then so much a you what through $X,XXX, GPU

David Hult

I'll with of Stellantis. you our question. best my great Daniel, give It's heavy a domestic mix attempt. brand We're

states. we And that when them, than done lot us when these Miller was domestic Asbury especially a in acquisitions, -- acquired were little I Mountain our profit as a gross of was. compared bit said PVRs in or we've where their to said, there So as margins peers, stores impacts the the there acquisition, we've higher

we while with margins. from creeping some days all-time very supply gross healthy get on good able deterioration some even highs, areas we're in are profit. And still to still at So we're seeing the profit domestic,

excited and the with payments large car still age do that average think the customers about the down. park a are that. down our we're it putting So lot to has We of

Operator

question next John Our with America. is Bank from of Murphy

John Murphy

mid integration growth first indicated of couple Parts little Service, term? should that Parts in long and sales of a I'm think ones. sort resolve how when opportunity that stunted will and Service we just and on you you Just curious the think David, quick about same-store a bit. and

David Hult

Sure. my in our convenient, never place. John, place, unfortunately when software hiccups of a it operate their service difficult accounting more they of I'll we're makes here. make integration, there's little consolidation never bit was and some efficient stores how software the with lot that others takes easy, And results. and do to and integrating a the jump can time, There our took best, which that product. it's for in At sell it's same

As or the I year. end the start said should normalized hoping be quarter fourth in and quarter, next last everything integrated by I of off it had QX and thought a fresh would We're X. quarter, we have of

John Murphy

super Okay. helpful. That's

side, on do a spectrum is is going of competitive sourcing used need just the of vehicles? really go late the age On until of this And we in function dearth maybe there a model regrow to of Or units? the there's getting a in of used think vehicles something dynamics was population that vehicle sort the set in structurally you who more and the market? older

Dan Clara

Dan. John, this is

$XXX of there, As of bringing you the dropped car we're for of or to so lack can better see, cost cost trying down with a around really and term. older sale sale keep our definitely call a that

to front everything cars harder power -- sell reliable get are those can we our our a one of put to within to are When do in get. safe, car the We we that them, guests. we line

in high, $XX,XXX seen product you're just you're has new last where years new about is that talking for has pretty to car cost But and point, we acquisition a been -- that cost at we've that -- our of cars the sales what continued even a still few looking in of the of

John Murphy

Okay. And making it big just seems lastly, then acquisitions, that makes obviously, and sense. you're like

be might the degree. maybe story cash got do some out point, to some it. But years. run many, It balance to that You've will sheet David, at flow many

or you about vehicle, be what saying each further build wider, whether and of XX you age I'm out sort soon. we're to deeper what the kind fourth of to it's market, So turn there in happening or about just sort to go the third, of the is needing sort sort work of ultimately, eventuality go in the service But go do even of years, vehicle might not of anytime How opportunity that? it wanting the talking as second, network X in of the years? that XX, after go turn of on that and think

David Hult

and our effectively John. ago, it the we think question, great a we've a we trying the It's done by part to pending few we've though in and the public, will grow company, we And a been markets acquired stabilize of we've stores. when and we of strengthen think smallest I'll it We were where had years years acquisitions, remind just will since of deal, we've even on that. XX be XXXX, in almost something. lot everyone, we And X close divested --

last to an there's ready few on years efficient any support over building a going We've time. been ready So take be OEMs consolidation for lot the organization, place of be that scale, to to the to and be might activity to there.

last disappeared for has the you leasing know, As the reasons. from years obvious for marketplace few

there's and with think of adoption lot the leasing coming time the we at point electric road consolidation. some a OEMs in the tailwinds further vehicles with with with So down of back

We relationship that base that compared opportunity in vehicles vehicle we're client the our shops. to a obvious retention just think a become from standpoint. within deepen always we're these we service more have independent as to complicated, And choice with our our to service markets

the our in while might we're relationship markets the lift both as in and numbers leasing car we new get positioned future, our bit goes in through to we're hopefully start with a to with bumpy world, goes to brands on grow get the retention and the years the we'll through our within to economically, what SAAR. expand additional well things really be in that and settle communities deepen on normal next back So down of in think the couple little what service

Operator

from comes Our next Gupta question JPMorgan. with Rajat

Rajat Gupta

a here. had couple Just

in to impact way quantify might And points couple the change, from of follow-ups. that there and had? the impact impact and a have Services have integration of software many same-store any I all at how Parts terms is On of the

David Hult

a XX look your from standpoint, consolidated doesn't stores. equally go an you accounting accounting on stores, Rajat, integrate all it across through some

the some issues, to that XX% and stores were standpoint out stores a we more you tell have was week impacted have that's the Some those of X customer don't, complicated get number from numbers XX% the during a figure quarter. on, some within the take the that would kind software. or from base that disruption to I and you then service because focus have it issues anywhere correct

was on speaking, more Some between of XX% were west. that. But and on out parts top others, than depending it XX% availability brands of that those stores generally

Rajat Gupta

it. had what the of Parts impact related up X it. to day parts part concerned X almost helpful. we've quantify once that any last you sense Detroit impact? to strike that. relatedly, to about, kind the should and any Got And into every That's us or way shortage follow-up. strike do And one you recover when if have Services, I weeks or a with to you having do just and for see of Any be get also Got we start plant might end shortages? And day expect now give of an eventually? could the you that Could

Dan Clara

is the over and received receiving it is we're day this of within centers, we're we parts OEM timely it's of then the impact biggest everything started, not parts We us, our to weeks, service we as guests to any additional parts seeing still employees is in and -- fashion. delivering, doing if not had ship turn how shipments been when inventory comments. a their all now. them. David tell the But days, to to cars starting power cases, not within were add and the Rajat, where Dan. to in you that are care have warehouses some This time our take delivery since to no start continue and I'll will the enough we able I the supply

the The across good Coast another news is our have satisfy whether East parts it's the our stores and some partner size transfer need Coast. to we scale guest our about the or West we're in for where amongst of that to able them

be affected the that to is is impact as best our unfortunately, working to the of we're going continues consumer. the But to the one greater. gets prolong, And end that this ability. So

David Hult

to that. add I'll Rajat,

a impact we're customers. starting We it's have parts well not that parts large deliver because those to wholesale our operation able to as to

that's concerning. So

goes that week coming. affecting every we it's where by, saw So this business, our

into the parts prepare inventories we all the decent for of it were Our supply up vehicles a to with strategic with as this. and brands. day best could managers built they And came

us degree it. imagine, weeks what feel But quarter. it's as these can this in certainly certain but impact down shut as point, go they fourth you and starting it's we're plants, on determine, going to to hard at the to To

another just like going far as side. the as Either quickly, back out, don't just coming vehicle and to consumer as they thing. get what wait frustrated far as a it And back, the for the to trades that's real you -- coming or to look gets know hopeful other really brand that's

Rajat Gupta

it. it. Got That's Got helpful color.

get believe, Just your in to company with it mentioned Mike, go last Xx I than prepared implicitly I the you XXXX. by to expect think less sort for deal? Is then Jim to end one. that some remarks, expect the for that Koons suggesting leverage the of year? the And next mentioned the cadence earnings you you back mid-Xs down of you to

of to suggest company, be next we to that would something than statement you're the including Is Xx assumption? expecting missing were grow like I would able curious. Koons, thoughts less next end that you to by in there? Jim Any it year. mean, Are for your an unreasonable year, the if get EBITDA there

Michael Welch

of down more prioritize We're cash paying cash going That's No. issue. flow to a to debt.

on as just the acquisitions. to flow level taking year that net down pay we'll debt that the have take far the cash next will that Koons level that as debt using take And we'll and the that's so

Rajat Gupta

-- it. Xx... EBITDA in an assumption that implicit Got is it. like But there, there's Got the

Michael Welch

going it's it add EBITDA to next there. in then it. with same-store assumption come year. takes with lower EBITDA But mean an assumption the -- There's flow that, cash is I to margins Koons

-- in a new the the lift of margins, get Koons decline the same-store because vehicle a little so adding be And backwards we'll bit because of EBITDA. while will

Operator

Ryan Sigdahl Craig-Hallum next from [Operator Instructions] question Our Group. with Capital comes

Ryan Sigdahl

little about maybe I nuance. want with you a more accounting to Can talk start TCA. bit

it Looking business rolling million this at assumption to their is on Asbury when was And then in also impact ex guess, timing a primarily TCA? maybe now other I impact? Or than can magnitude started XX. of XX, profit, stores you is are next year that you underlying there expected talk year? some $XX of negative

Michael Welch

Yes.

things two we had there. So in forecast, for new When million year. expected vehicle higher originally $XX this and volumes the vehicle used we

those as because and in we're less, LHM hit this stores year of of that's so XXXX came And of we're the in less being deferral. kind effect rolling the the off for volumes with far replacing That's rolling income as a off for And lower. 'XX. it

that's So it. of big a chunk

And Florida have of Asbury. and ones other decided going push the we out a that in the delayed Georgia to with rolled the quarter we then and piece off we're Georgia fourth where our Koons to some volume the first for during versus are to to did things, the groups go large We holidays quarter in quarter. The just stick trying lot it in fully first The this Florida acquisition is fourth in that our ones, out. the other just until quarter. the

and of both group rolling Asbury a stores is and of projections. LHM little out, the in from us lower for So volumes bit Asbury a just from our the big delay which original then Florida

year... next then And for

Ryan Sigdahl

you. thank -- yes -- Expect

Michael Welch

Yes.

would $XX in going used call through SAAR we're in is next close what expect the of year, million breakeven of be to terms units something forecast range. next vehicle still volumes. the it, for that, to working the But For year I

year out we'll So have the of we'll plus deferral the pretty have big year that -- fall because we year, stuff rolled rolling year. Florida next pretty full off all next just fall in this for

Ryan Sigdahl

Great. question me. for Last

then I F&I transactions, rates. through And QX. the then to mentioned anything finance, at You October and dynamics stores? Clicklane, it slightly you've But would it's is there. which cash retail guess seen can Clicklane between lower XX% what attach the XX% be talk was F&I rates identical look you of and attach in helpful the also I in

David Hult

number it I is of just script. have of of reserve. sales about is F&I wrong rest product products In it might it our XX% was XX% it in past the Normally, This Sure, Ryan. reserve. David. XX% apologize, I this we vehicle, -- got is in quarter, the per and

on material the number, little penetration down. was leakage We So don't it's a product was but certainly sales. our a bit it lower think

would a we call healthy thought when little we're we're a bit. it XX% XX% and think out we So We business sales reserve. product

Ryan Sigdahl

I you. well. Anything then misunderstood to it may trends be me. that's in change for October? just on Any Got And there? as comment

Dan Clara

what what Dan. mean, this Ryan, I for experiencing we've No, is is discussed October. we're

Operator

Our Jordan question next is from Bret with Jefferies.

Bret Jordan

discounting Any the is supply Or on market with and the third impacting? the is in less UAW impact quarter to the concerns into broader GPUs color I guess fourth? around shortage? Or it not

Dan Clara

guess, before it even coming. we're the could shift considerably where of scale it up aggressive less have taking them. seen back place, looks we though strike on see lot more Yes, I were lot a a we And know -- starting the for Bret, There long a now going the are it's that was Dan. see and domestic were this to business a discount is to dealers like you time, we side. a that

Bret Jordan

for question, guess, any Okay. have the belt, And what than historic going we market new? average higher given to under the market sort asked then just a changes that GPU in are I you is stay normal now earlier, going quarter the is mean, new to levels? I another got feelings do it back it the got you've Or XXXX? of your but on

David Hult

and the mix. going future we've XXXX differ believe in like. whether model that now and it brand in that it's mix because look is Yes, one to thing luxury, by space, stated it to a Bret, lot we mix brand There's were going the now our we the what nothing And there's prove whatever right the think to import. settles I peer out. into, we'll that company domestic predict of believe be in still of on The world than higher the we will across all or along,

we our levels, what business scale to But and we up as as expenses we'll the continue can our should we believe generating. end far of than XXXX still as size and manage best we're higher that to

Bret Jordan

Okay. get doing agreements using there prohibit I And then warranty I supply one at problems aftermarket if quick O'Reilly chain and about question on stock guess, on do anything you When prevents work? to? up OE from Parts from mean and you Or could you you you for parts Service. post had is parts, that out think that?

David Hult

the stay aftermarket be from quality to they're gas market We cars vehicles. we what believe this that put circumstances certainly We generally So want the on parts. is manufacturers. We try best David. some we them on sell But keep running do certain keep in it. We do the up represent away business parts in in road, the and parts to they're some and aftermarket. and to should our their

This our look today. quarter everyone's concludes great call forward we to fourth down road. participation, discussing and a appreciate Have We day. the our earnings

Operator

today's conference. This concludes

You this for thank we and time, you may lines participation. at disconnect your your

Asbury Automotive (ABG) 24 Oct 232023 Q3 Earnings call transcript